Telkom fixed-line shocker
Telkom has released its financial results for the year ended 31 March 2016, which show the biggest annual fixed-line subscriber decline since the company listed in 2003.
Telkom now has 3,217,000 fixed-line subscribers, down from 3,439,000 a year ago. The decline represents the biggest annual loss since 2001.
The decline was prevalent on all fixed-line segments: Post-paid (3.8% decline), ISDN channels (4.6% decline), Pre-paid (22.6% decline), Payphones (40% decline).
Telkom’s fixed-line penetration rate, based on the 2015 Stats SA mid-term population statistics, dropped from 6.6% to 5.8%.
Total fixed-line traffic also showed a drastic decline – from 16.3 billion minutes per year to 14.9 billion minutes per year.
Telkom has lost fixed-line subscribers since 2001
Telkom has battled to hold onto its fixed-line users since 2000, when its subscriber numbers peaked at 5,493,000.
The steady decline over the last 16 years happened despite an economic boom from 2003 to 2007 and the launch of ADSL in 2002.
Telkom previously said the decline was caused by many factors, including competition from mobile services, copper theft, and tough economic conditions.
The table below provides an overview of Telkom’s fixed-line growth and decline since 1993.
| Telkom fixed lines | |||
|---|---|---|---|
| Date | Fixed-line subscribers | YoY change | 6 months change |
| 1993 | 3,458,000 | — | — |
| 1994 | 3,594,000 | 136,000 | — |
| 1995 | 3,773,000 | 179,000 | — |
| 1996 | 3,926,000 | 153,000 | — |
| 1997 | 4,259,000 | 333,000 | — |
| 1998 | 4,645,000 | 386,000 | — |
| 1999 | 5,075,000 | 430,000 | — |
| 2000 | 5,493,000 | 418,000 | — |
| 2001 | 4,962,000 | -531,000 | — |
| Mar-02 | 4,924,000 | -38,000 | — |
| Mar-03 | 4,844,000 | -80,000 | — |
| Sep-03 | 4,812,000 | — | -32,000 |
| Mar-04 | 4,821,000 | -23,000 | 9,000 |
| Sep-04 | 4,870,000 | 58,000 | 49,000 |
| Mar-05 | 4,726,000 | -95,000 | -144,000 |
| Sep-05 | 4,730,000 | -140,000 | 4,000 |
| Mar-06 | 4,708,000 | -18,000 | -22,000 |
| Sep-06 | 4,675,000 | -55,000 | -33,000 |
| Mar-07 | 4,642,000 | -66,000 | -33,000 |
| Sep-07 | 4,621,000 | -54,000 | -21,000 |
| Mar-08 | 4,532,000 | -110,000 | -89,000 |
| Sep-08 | 4,504,000 | -117,000 | -28,000 |
| Mar-09 | 4,451,000 | -81,000 | -53,000 |
| Sep-09 | 4,398,000 | -106,000 | -53,000 |
| Mar-10 | 4,273,000 | -178,000 | -125,000 |
| Sep-10 | 4,234,000 | -164,000 | -39,000 |
| Mar-11 | 4,152,000 | -121,000 | -82,000 |
| Sep-11 | 4,073,000 | -161,000 | -79,000 |
| Mar-12 | 3,995,000 | -157,000 | -78,000 |
| Sep-12 | 3,894,000 | -179,000 | -101,000 |
| Mar-13 | 3,800,000 | -195,000 | -94,000 |
| Sep-13 | 3,713,000 | -181,000 | -87,000 |
| Mar-14 | 3,618,000 | -182,000 | -95,000 |
| Sep-14 | 3,531,000 | -182,000 | -87,000 |
| Mar-15 | 3,439,000 | -179,000 | -92,000 |
| Sep-15 | 3,323,000 | -208,000 | -116,000 |
| Mar-16 | 3,217,000 | -222,000 | -106,000 |
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