Telkom loses more fixed line users

On 21 November 2011, Telkom released their interim financial results for the period ended 30 September 2011, showing lower revenue and profit.

Telkom revealed that their operating revenue, earnings per share, voice revenue, data revenue and the company’s EBITDA margin were all down while operating expenses increased.

These results do not bode well for the company, and Telkom CEO Nombulelo Moholi described the South African telecommunications market as “one under intense pressure as growth in fixed and mobile voice revenues slows considerably”.

Declining fixed line numbers

One of the negative trends for Telkom is the continual decline of fixed line subscribers. At the end of September 2011 Telkom had 4,073,000 fixed line subscribers, down from 4,234,000 a year earlier.

Since the year 2000 there has been a steady decline in fixed-line numbers despite an economic boom from 2003 to 2007 and the launch of ADSL in late 2002.

The following table shows the steady decline of Telkom’s fixed line subscribers over the last decade.

Year Fixed line subscribers 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
2002 4,924,000 -38,000
2003 4,844,000 -80,000
2004 4,821,000 -23,000
2005 4,726,000 -95,000
2006 4,708,000 -18,000
2007 4,642,000 -66,000
2008 4,533,000 -109,000
2009 4,451,000 -82,000
2010 4,273,000 -178,000
2011 4,073,000 -200,000

Latest news

Partner Content

Show comments

Recommended

Share this article
Telkom loses more fixed line users