Among the challenges faced by Telkom is the fact that fixed-line voice usage revenue decreased 13,5% to R6,9-billion, and it experienced a 22% decrease in leased line revenue.
Fixed-line voice usage revenue dropped to R6,9-billion, which can be attributed to a 9,6% decline in voice minutes, resulting from fixed-to-mobile substitution and a 4,9% decline in the number of lines. The decrease was in business as well as residential lines. Business lines decreased due to the consolidation of business activities and cost-saving initiatives.
Fixed-line subscriptions revenue grew 2,5% to R8 005-million (March 2014: R7 812-million) as a result of average line rental tariff increases of around 6%.
Mobile voice and subscriber revenue increased 46,0% to R717-million. This can be attributed to a 21,2% increase in the number of active mobile subscribers and a 19,5% increase in blended ARPU.
Interconnection revenue remained relatively flat. The decrease in international interconnection revenue was due to lower international outgoing traffic volumes.
Revenue from data connectivity services decreased 0,4% to R5 441-million (March 2014: R5 461-million), caused by a decline in Diginet and IPLC revenue, due to increased competition and migration to Metro Ethernet services. This was partially offset by an increase in ADSL revenue and Metro Ethernet services. ADSL revenue increased as a result of a 7,9% increase in ADSL subscribers to 1 005 286 (March 2014: 931 858).
With continued self-provisioning by other licensed operators, revenue from leased line facilities remained under pressure and declined 22,0% to R1 395-million (March 2014: R1 789-million).
Higher growth of 9,3% increase in Internet access and related services revenue was supported by a 7,5% increase in Internet subscribers.
Managed data network services revenue increased 13,8% to R1 046-million (March 2014: R919-million) due to an increase in the number of VPN Supreme and satellite services customers.
In line with Telkom’s strategy to focus on data, it offered attractive data deals and promotional products which led to an increase in data subscribers, and a 50,6% increase in mobile data revenue to R988-million (March 2014: R656-million).
The company won some key strategic deals in the IT market, which boosted its IT Business Services data revenue by 82,4% to R633-million (March 2014: R347-million).
The strategic decision that was made to discontinue sales of PC and gaming equipment saw a 19,5% decline in customer premises equipment sales to R247-million (March 2014: R307-million). Despite this, Telkom’s rentals increased 14,1% to R865-million (March 2014: R758-million) due to increased uptake in next generation equipment rentals and higher tariffs.
Mobile handset and equipment sales revenue increased 42,0%, driven by higher bulk sales to dealers and a sharp increase in smartphone and tablet sales.