Telkom’s fixed-line business is cratering as it turns its back on copper
The numbers are not that surprising, given that Telkom has said it is decommissioning its copper network countrywide. But the group’s 2020 fixed-line performance still makes for sobering reading.
Telkom’s 2020 financial results, for the 12 months ended 31 March 2020, show fixed-line revenue fell by 13.5% year on year to R8.2-billion.
Fixed usage cratered by 22% to just R3-billion, while fixed subscription revenue fell by 21.2% to R5.2-billion. Interconnection fees from other operators tanked by a third to R537-million.
Fixed broadband subscribers (including fibre-to-the-home connections), declined by 19% to 686 525.
These poor numbers come despite an increase in Telkom’s home fibre broadband connections.
Fixed home fibre broadband subscribers rose by 5.8% year on year to 455 553. Telkom said the attachment rate — the percentage of people who take up the company’s fibre offering when it’s available to them — has risen to 48%.
Telkom’s bacon was saved in the 2020 financial year to a large extent by mobile. Mobile revenue grew by 40.9% year on year. Of that, mobile voice and subscriptions climbed by 78.6% to R3.5-billion. Mobile data revenue rose by 46.3% to R8.7-billion.
Mobile subscriptions
During that same period, number of mobile broadband subscribers climbed by 28% to 8.2 million. Total mobile subscribers climbed by 23.9% to 12 million.
Telkom’s group revenue for 2020 came in at R43-billion, up 3% on last year. Earnings before interest, tax, depreciation and amortisation fell by 8.7% to R10.3-billion. — (c) 2020 NewsCentral Media
Source: techcentral.co.za