Telkom’s fixed-line decline
Telkom unveiled its interim results for the six months ended 30 September 2012, revealing that the company currently has 3,894,000 fixed access lines – down from 3,995,000 in March 2012.
The latest figures show that Telkom’s fixed access lines are now at the lowest level since 1995 – a time before the company’s strong fixed-line growth started.
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.
What should be of particular concern to Telkom is that every segment of its fixed-line business has declined, including post-paid and ISDN lines.
The following table provides an overview of Telkom’s fixed-line performance over the last 12 months.
| Lines | September 2011 (’000) | September 2012 (’000) | Percentage growth |
| Fixed access lines |
4,073 | 3,894 | -4.4% |
| Post-paid – PSTN | 2,513 | 2,465 | -1.9% |
| Post-paid – ISDN channels | 767 | 761 | -0.8% |
| Pre-paid | 675 | 571 | -15.4% |
| Payphones | 118 | 97 | -17.8% |
Telkom’s steady decline in fixed-line numbers since the turn of the century has been blamed on many factors, including competition from mobile services, copper theft and tough economic conditions.
The following table provides an overview of Telkom fixed-line growth and decline since the early nineties.
| 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 |
| 2012 | 3,894,000 | -179,000 |
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