Telkom Takes Over Internet Service Provider Africa Online

What do you do when you already own the telecommunications market in your home country? You expand internationally. Telkom has apparently acquired Africa Online, an ISP that operates in ten African countries, including South Africa's neighbours Namibia, Swaziland and Zimbabwe. Telkom will pay R70 million to African Lakes, the UK-based company behind Africa Online.

The penetration of the internet is of course very low outside of South Africa, and there is actually real competition to deal with, so Telkom may find its management competence a little stretched. In South Africa, Telkom's battles with its "competitors" could be likened to a club rugby team who only ever plays against school under-14 teams -- and gets to change the rules depending on the run of play. But out in the real world, there are All Blacks and Lions and more or less level playing fields. With luck, the experience will enlighten senior management at Telkom, and teach them something about customer service.

Perhaps they might even pick up on the economics of abundance -- imagine the impact on Telkom revenues of providing really low-cost web access in South Africa. Imagine the impact on the economy and education...

Business Day article