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 |
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