Telkom is relying on its size and scale to compete on the data network front as more operators self-provide and enter the market with competitive offerings.
Telkom's data revenues grew 12,2% to R4,459-billion. Internet access and related services revenue grew 30,2% to R700-million and managed data network services revenue increased by 42,1% to R444-million.
Revenue from leased lines decreased by 4,2% to R862-million as a result of decreased pricing in order to combat self provisioning by other operators.
Telkom is confident that its revised pricing combats continued moves from other operators to self provide. Telkom's scale makes it difficult for other operators to compete on the cost of leased line provisioning.
ADSL subscribers grew by 46,7% to 491 774 subscribers over the comparative reporting period and Do Broadband subscribers increased to 154 095 from 78 780 at 30 September 2007.
Continued growth has been stimulated by the commoditisation of ADSL, the Do Broadband offering, the Self Install Option, DSL port automation and wholesale services.
Telkom continues to target ADSL penetration of 15% of 20% of fixed access lines by 2010/2011 with the introduction of new service offerings and aggressive price reductions.
Telkom`s continued focus on improving customer service has led to an improvement in the average time to install (ATTI) to 17 working days from the 20 working days achieved for the year ended 31 March 2008.
The introduction of the Self Install Option is expected to continue to improve the ATTI. As at 31 March 2008, 57% of all ADSL installations were done through the Self Install Option, growing to 60% by 30 September.
Further effort has gone into improving our customer satisfaction levels. DSL automation has automated the port allocation resulting in fewer errors and further reducing the lead time associated with the allocation of the DSL ports.
A broadband demand register has been set up to hold orders that cannot be serviced due to infrastructure constraints. This intelligence is being used to align our DSL build programme with actual demand.
In addition, the Broadband Service Assurance Solution being developed will provide users with self-help and self-diagnostic tools. This is particularly important to
Internet service providers who will be able to provide first line maintenance and support capabilities, improving their customer service.
The launch of the wholesale ADSL product offering has contributed to the growth of ADSL with 35 688 services being sold during the six months, up from 21 469 sold by 31 March 2008.
ADSL DSLAMs have increased from 2 660 at 31 March 2008 to 3 036 at 30 September 2008, covering more than 92% of Telkom`s existing customer footprint.
In extending and complimenting our ADSL footprint, Telkom continues to roll out WiMax base stations and is on track to reach the target of 76 base stations by 31 March 2009. Telkom has 50 WiMax base stations currently installed.
WiMax has been deployed to provide broadband connectivity to customers that are not in the ADSL footprint and in areas that have been hard hit by copper theft and in high maintenance areas.