Telkom hopes to increase the range of products and services it is able to offer its customers through the implementation of an IP-based next generation network (NGN). 

The company believes these new products and services will compete effectively and provide it with the ability to counteract price reductions.
Telkom is in the third year of its NGN build-out programme. since 31 March it has achieved a number of milestones, including:
* An increase of the ADSL footprint to 2501 DSLAMs.
* 52 Metro Ethernet sites deployed in Gauteng and Western Cape using 10Gbit and 1Gbit line systems.
* Dense Wave Division Multiplexing (DWDM) system capable of forty 10Gbps signals over a single pair of fibre. The first system was deployed between Gauteng and Durban. The full deployment of this technology provided thepotential to increase transport bandwidth capability.
* Automatic self-healing re-routing of bandwidth on national layer.
* National and local transport network increased by 167 nodes growing the network bandwidth potential by 1,2Tbps. Further expansion is planned which will increase the bandwidth potential by 2,2 Tbps.
* Network Interactive Voice Response System deployed which offers advanced speech services such as automated speech recognition and a text-to-speech applications enabling Corporate customers and Telkom to enhance their voice systems.
* Diginet and Diginet Plus services are being increased through the further  installation of six core nodes. A further three core nodes are in planning phase. The bandwidth potential will increase by 86Gbps.
*  8 000 2Mbps equivalent links have been provided to mobile cellular operators in the period – a 13,5% increase in bandwidth.
* IMAX has been introduced into the system and is ready to carry traffic. IMAX has the ability to carry narrowband and broadband services for wire line legacy and converged services.