Telkom South Africa, which supplies wireline and cellular services to South African consumers and businesses, is laying off 3,000 staff.

The company says the dominance of two of its rivals, Vodacom and MTN, as well as the fundamental changes taking place in the South African marketplace, plus the weak economy, has affected it decision to let go up to 20 per cent of its workforce.

“Besides the difficult macroeconomic environment confronting all companies operating in South Africa – where GDP per capita is declining because economic growth is lagging population growth – Telkom is having to reposition itself amid fundamental changes within the telecommunications industry,” the company said in a statement.

“At the same time, Telkom has seen a sharp decline in fixed-voice and interconnection revenues across the group as customers shift towards new technologies, such as fibre to the home. This trend will continue,” it continued.

Telkom firmly blames Vodacom and MTN saying the two suppliers have virtual control over voice and data pricing.

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