8ta exceeds 1 million subscribers
Telkom today unveiled their financial results for the year ended 31 March 2011, with a decline in revenue and fixed line subscribers.
One of the focus areas for Telkom is its new mobile business 8ta, and this part of the business is showing strong growth.
8ta was launched on 14 October 2010, and by 31 March 2011 the company signed up 1,199,596 subscribers that have completed the RICA process.
Telkom CEO Pinky Moholi revealed that 8ta has 473,604 active subscribers, made up of 440,775 prepaid users and 32,829 post paid users.
The Average Revenue Per User (ARPU) for 8ta’s prepaid subscribers is R15.86 while contract subscribers on average spend R238.57 per month – with an average ARPU across the subscriber base of R22.60.
Infrastructure growth
Progress is also being made on improving the 8ta distribution channel. At 31 March 2011 8ta branding had been completed at 20 Telkom Direct Stores and six new stand-alone 8ta flagship stores have been completed.
“We had 51,800 airtime point of sales, 22,300 SIM card point of sales and 398 contract point of sales. 970 base stations had been constructed. As previously announced, we are working through an order to build a further 2,000 base stations,” Telkom said.
Moholi pointed out that 8ta had 1,012 base stations by the end of May 2011.
Still opportunities
Telkom said that they believe there is a market opportunity in South Africa as mobile voice and especially mobile data are still experiencing growth.
“Telkom has a competitive advantage by virtue of its existing business and customer base. A product range spanning both mobile and fixed value pools will assist Telkom to defend itself more effectively against competitors and to grow revenues,” said Telkom.
“The mobile business is designed to also assist Telkom in addressing fixed-line cost challenges and to position Telkom more competitively in the market.”
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