South African telecommunications services provider Telkom has announced the launch of Openserve, a newly established autonomous and redesigned wholesale and networks division.

The development is in line with Telkom's turnaround strategy and the company believes it is a clear opportunity for the company to drive what it calls 'real perception change' to its market.

The division is focused on trade in broadband and connectivity services to consumer and enterprise customer bases.

According to the company Openserve represents a bold step to drive access to broadband and fundamentally change the ICT industry in South Africa.

It will operate within Telkom's financial framework and the company has confirmed that the network and factory components will be integrated within six months as the business' operating model is finalised.

At the launch event hosted in Newtown Johannesburg, Telkom Group CEO Sipho Maseko said, "Two years ago we embarked on a journey of transformation.. .the last two years have not been easy. Competition within retail and wholesale is increasing with intensity..."

"Over the past two years, our strategy has delivered positive results, but it is not yet complete. We have tackled inefficiency, complexity and high costs and our quest to improve our customer experience remains a primary focus. But to fundamentally change the way we do business, while also working to take up a meaningful and impactful role in an increasingly open-access environment, we have had to review our operating model," said Maseko.

According to Alphonzo Samuels, the MD for Openserve, the separation signals Telkom's commitment to a more competitive market and lower prices for consumers. "Telkom has already begun reducing prices associated with wholesale network infrastructure access.

With the launch of Openserve, we want to make a significant impact on the way we provide open access broadband to all South Africans. We welcome a more open-access environment and believe that we, as Openserve, can make important headway in helping all South African bridge the digital divide," said Samuels.