Telkom is funnelling more capital into IT as it overhauls its OSS/BSS systems, aiming to sell across fixed, mobile and enterprise lines more effectively. The move is designed to lift average revenue per user, strengthen cross-selling and support the company’s broader turnaround strategy in a highly competitive market.

Telkom’s latest capital allocation tells a clear story: in South Africa’s telecoms market, the battle is no longer only about towers, fibre and spectrum. It is increasingly about software, customer intelligence and the ability to sell seamlessly across multiple products and channels.

The company is investing heavily in a multi-year overhaul of its OSS/BSS stack — the operational and business support systems that sit at the heart of how a telecom operator manages billing, provisioning, customer care and product bundling. For a business like Telkom, this is not just an internal IT project. It is a strategic move to improve commercial agility, unlock converged selling and drive higher average revenue per user.

Why OSS/BSS matters

In plain terms, OSS/BSS is the digital plumbing that helps a telecom operator understand what a customer has bought, how it is used and what else should be offered next. If the systems are fragmented or outdated, cross-selling becomes slow, customer service becomes clunky and product launches take too long.

By modernising this core infrastructure, Telkom is positioning itself to package services more intelligently across mobile, fibre and enterprise connectivity. That matters in South Africa, where consumers and businesses are increasingly looking for one provider that can handle multiple connectivity needs with less friction.

A bet on converged growth

Telkom’s focus on IT spending also reflects a broader shift in the telecoms industry. Traditional voice and data growth has matured, and operators now need better systems to monetise existing customers rather than rely purely on new subscriber growth. That means improving retention, personalisation and bundling.

For Telkom, converged selling could be especially valuable. The group has assets across mobile, fixed-line broadband, fibre through Openserve and enterprise services via BCX. If those parts can be stitched together more effectively in software, the company can create more compelling offers for households and businesses alike.

That is particularly relevant in South Africa’s price-sensitive environment, where consumers are quick to switch providers and business customers demand more value from every contract. Better systems can help Telkom respond faster to market changes, launch promotions more efficiently and reduce the operational drag that often comes with legacy platforms.

What this means for customers

Customers may not notice the overhaul immediately, but the benefits could show up over time in the form of simpler bundles, better service experiences and more relevant offers. If Telkom executes well, the result should be fewer billing issues, smoother activation processes and stronger support across channels.

For enterprise customers, the upside may be even bigger. Organisations increasingly want integrated connectivity, cloud, security and managed services from a single partner. A stronger IT backbone gives Telkom a better shot at packaging and delivering those solutions at scale.

The bigger South African context

Telkom’s move comes at a time when the local telecoms market is under pressure from multiple angles: intense competition, changing consumer behaviour, rising infrastructure demands and the need to keep investment disciplined. In that environment, capital spending is being scrutinised more closely than ever.

But spending on core systems is different from spending for its own sake. It can be the difference between a business that merely connects customers and one that can actively grow the value of those relationships.

For South Africa’s telecoms sector, Telkom’s strategy is a reminder that the next phase of competition will be increasingly digital. Networks still matter, but so do the software layers that turn connectivity into profitable customer relationships.

If Telkom can execute this IT transformation effectively, the payoff may extend well beyond internal efficiency. It could help shape the company’s next chapter as a more agile, more integrated and more commercially resilient telecoms operator.