South African fixed-line operator Telkom has announced the launch its long-awaited mobile offering, becoming the country’s fourth mobile operator. In a short statement this morning, Telkom unveiled a new mobile brand called ‘8ta’ offering “prepaid voice and data products from launch” and post-paid products from next month. “We are able to mobilise the reliability of fixed-line and the agility of mobile to provide products that South African people really want,” said acting CEO Jeffrey Hedberg (pictured). Telkom – the country’s largest fixed-line operator – has been looking to launch its own mobile service since divesting its 50 percent stake in South Africa’s number one mobile player, Vodacom, two years ago. According to a report in South Africa’s Business Day newspaper, the operator has signed a five-year agreement with MTN to roam on its network, giving it an immediate 96 percent coverage. However, it has budgeted ZAR6 billion (US$880 million) over the next five years to build its own mobile network; it has so far built 800 base stations and will add 400 more in the next six months.

Telkom has set an ambitious target of capturing as much as 15 percent of South Africa’s mobile market within five years. Its strategy will be linked to providing bundled fixed-line, data and mobile services to its customers. Although it has said it will not try to spark a price war, Andrew Kingston, a portfolio manager at Sanlam Investment Management, told Business Day that the “coming months will be disruptive,” as Telkom takes aim at existing incumbents Vodacom, MTN and Cell C, which are all expected to launch counter packages. “[Telkom] will most likely get traction in the low-end market, which is price-sensitive,” said Kingston. “There is a lot of churn but that market accounts for 20 percent to 30 percent of the total mobile market.”