Telkom released its interim results for the six months ended 30 September 2019, which show a huge decline in fixed-line subscribers.
Telkom’s fixed-line subscribers declined from 2,566,000 in September 2018 to 1,975,000 in September 2019.
This means Telkom lost 591,000 fixed-line subscribers over the last year, which equates to a 23% decline in its fixed-access line customer base.
While this decline is not new – Telkom has been struggling to hold onto its fixed-line users since 2000 – the rapid loss of fixed lines over the last year is concerning.
Decline in fixed broadband lines
Telkom’s fixed-line broadband subscribers – which include ADSL, VDSL, and fibre-to-the-home customers – declined from 974,181 in September 2018 to 781,255 in September 2019.
This comes at a time when there is a tremendous demand for fibre-to-the-home services, a market which Telkom should dominate.
The decline in fixed-line broadband subscribers has a knock-on effect. It suffered serious losses on its Internet service provider (ISP) subscribers over the last year.
Telkom Internet all-access subscribers declined from 550,606 in September 2018 to 476,763 in September 2019.
Instead of doubling down and regaining its dominance in the fixed-broadband market, it is moving in the opposite direction.
Telkom is actively cutting ADSL lines as part of discontinuing its copper network, and has reduced its fibre investment by 36%.
This means that Telkom is happy to relinquish its dominance in the fixed-broadband market and let companies like Vumatel, Octotel, and Frogfoot eat its lunch.
Telkom fixed-line subscriber decline
The table below provides an overview of Telkom’s fixed-line growth and decline since 1993.
|Telkom Fixed Lines|