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South African exchange controls are killing the local software development industry.
The tech group wants to step up its work with SITA, despite CEO Teddy Daka's troubled past with the state's ICT procurement agency.
Telecoms and postal services DDG Sam Vilakazi has resigned - the third DDG in five months to leave the ministry.
Solidarity says 2 393 Telkom employees have opted for retrenchment packages, but the company has refused to comment at this stage.
The telecoms department denies SA Connect is dead, saying it is on course with the implementation of the first phase.
There remains scope for mobile growth in Africa, where wireless penetration is well below that of any other region, says TeleGeography.
The relationship between unions and Telkom has been destroyed by the company's severance package offer to unionised workers.
Despite a difficult year, Telkom Business has reported a significant revenue increase, which it says is an indication of future trends.
With the demise of potential MultiChoice competitor the Altech Node, market watchers say it is up to ICASA to start regulating for competition.
The telco extends voluntary severance and retirements packages to unionised workers, saying it received hundreds of applications.