Telkom’s fixed line slump
Telkom unveiled its interim results for the six months ended 30 September 2013, revealing that the company currently has 3,713,000 fixed access lines – down from 3,894,000 a year ago.
Telkom’s fixed-line numbers are at its lowest level since 1994, which places pressure on the company’s turnaround plan. To offer services such as ADSL or VDSL to subscribers, a fixed line to the premises is needed.
With fixed line numbers declining, the pool of people to whom additional fixed line products can be sold is also shrinking.
The following table provides an overview of Telkom’s fixed-line performance over the last 12 months.
| Lines | September 2012 (’000) | September 2013 (’000) | Percentage growth |
| Fixed access lines | 3,894 | 3,713 | -4.6% |
| Post-paid – PSTN | 2,465 | 2,396 | -2.8% |
| Post-paid – ISDN channels | 761 | 750 | -1.4% |
| Pre-paid | 571 | 478 | -16.3% |
| Payphones | 97 | 89 | -8.2% |
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.
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 |
| 2013 | 3,713,000 | -181,000 |
More on Telkom’s fixed line numbers
Telkom continues to bleed fixed line subscribers
Telkom’s fixed line numbers the lowest in 15 years
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