Telkom has grown the number of fixed-line broadband subscribers on its network by 16,1%. At the end of March, it had 751 625 asymmetric digital subscriber line (ADSL) subscribers, up from 647 462 a year earlier.
However, the company’s share of net additions within the entire broadband market is declining as a result of the rapid growth in mobile broadband. Broadband does, however, remain a growth driver for Telkom.
In order to capitalise on the growth, Telkom says it is necessary to invest significantly in “shortening the local loop, deploying additional fibre and metro Ethernet”.
“Fixed-line broadband needs to differentiate itself from mobile offerings through far higher speeds and quality,” says Telkom CEO Nombulelo Moholi. “Research indicates that customers are prepared to pay more for higher value services.”
In the 2011 financial year, Telkom’s data revenues increased by 7,7% to R10,7bn due mainly to revenue generated by the 2010 World Cup, a growing demand for services, including ADSL, a 7,5% increase in revenue from leased lines provided to mobile operators, growth in managed data network services and an increase in Internet access and related services.
The increase in data revenue during the period occurred despite significant price reductions. Data connectivity services revenue increased by 4,5% to R5,3bn. This includes an 18,1% increase in ADSL revenue to R1,6bn. Leased-line revenue increased by 8,7% to R2,2bn. Internet access and related services revenue grew by 5,5% to R1,8bn. — Craig Wilson, TechCentral
- Subscribe to our free daily newsletter
- Follow us on Twitter or on Facebook