Telkom’s fixed line numbers continue to slide
Telkom today announced its interim financial results for six months ending September 2010. These results did not paint a good picture for Telkom with declining revenue and profits.
There were some positive signs, including a steady growth in ADSL subscriber numbers as well as a good start for its new 8ta mobile operator.
What should be of concern to the fixed line operator is the continued slide in fixed line subscriber numbers. Telkom’s latest results reveal that the company now has 4,234,000 operational fixed lines, down from 4,398,000 a year ago.
This means the fixed line penetration rate in the country declined from 8.9% one year ago to the current 8.5% – an overall decline of 4.5%.
This equates to a drop of 164,000 fixed lines over the last twelve months. In March 2010 Telkom had 4,273,000 active fixed lines which mean that the company lost 39,000 subscribers over the last six months.
The decline in fixed line numbers is however nothing new. Since Telkom’s fixed line numbers peaked at 5.5 million in 2000 there has been a steady yearly decline in fixed line subscriber numbers.
The only positive sign for Telkom is the fact that the number of lost subscribers each months is lower than what it was six months ago.
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