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Fixed-line operating revenue increased in
the 2009 financial year primarily due to
continued growth in data services, higher
revenue from interconnection services and
subscriptions and connections partially
offset by a decrease in traffic revenue,
particularly local and long distance traffic
revenue partially offset by an increase in
traffic revenue from subscription based
calling plans. Fixed-line operating revenue
increased in the 2008 financial year
primarily due to continued growth in data
services and higher revenue from
subscription based calling plans,
interconnection and subscriptions and
connections, partially offset by a decrease
in traffic revenue, particularly local and
long distance traffic revenue.
Fixed-line operating revenue was adversely
impacted in both the 2009 and 2008
financial years due to a decrease in the
number of residential post-paid PSTN lines
primarily as a result of customer migration
to mobile and higher bandwidth products
such as ADSL and lower connections, and
a decrease in the number of prepaid PSTN
lines as a result of customer migration to
mobile services and our residential postpaid
PSTN services to enable access to
subscription based calling plans and was
positively impacted by our increase in
ISDN channels, ADSL services and, to a
lesser extent, business post-paid PSTN
lines. In addition, traffic was adversely
affected in both years by the increasing
substitution of calls placed using mobile
services rather than our fixed-line service
and dial-up traffic being substituted by our
ADSL service, as well as the decrease in
the number of prepaid and residential postpaid
PSTN lines and increased competition
in our payphones business. As a result,
traffic declined 7.6% in the 2009 financial
year and 8.2% in the 2008 financial year.
Revenue per fixed access line increased
2.1% to R5,349 in the 2009 financial
year from R5,250 in the 2008 financial
year primarily due to a 1.4% decrease in
the average number of access lines
and increased interconnection and
subscriptions and connection revenue
partially offset by lower traffic revenue.
Revenue per fixed access line decreased
Telkom Annual Report 2009 111
Fixed-line operating revenue
Year ended March 31,
2008/ 2009/
2007 2008 2009 2007 2008
(in millions, except percentages) ZAR % ZAR % ZAR % % change % change
Subscriptions and connections 6,286 19.4 6,330 19.4 6,614 19.7 0.7 4.5
Traffic 16,740 51.8 15,950 49.0 15,323 45.5 (4.7) (3.9)
Local 4,832 14.9 4,076 12.6 3,634 10.8 (15.6) (10.8)
Long distance 2,731 8.5 2,252 6.9 2,036 6.0 (17.5) (9.6)
Fixed-to-mobile 7,646 23.6 7,557 23.2 7,420 22.0 (1.2) (1.8)
International outgoing 988 3.1 986 3.0 933 2.8 (0.2) (5.4)
Subscription based calling plans 543 1.7 1,079 3.3 1,300 3.9 98.7 20.5
Interconnection 1,639 5.1 1,757 5.4 2,084 6.2 7.2 18.6
Data 7,489 23.1 8,308 25.5 9,310 27.6 10.9 12.1
Sundry revenue 191 0.6 227 0.7 328 1.0 18.8 44.5
Fixed-line operating revenue 32,345 100.0 32,572 100.0 33,659 100.0 0.7 3.3
0.5% to R5,250 in the 2008 financial
year from R5,275 in the 2007 financial
year primarily due to the decline in traffic
tariffs and local traffic volumes, partially
offset by increased subscription based
calling plans, interconnection and
subscriptions and connections tariffs.
Subscriptions and connections. Revenue
from subscriptions and connections consists
of revenue from connection fees, monthly
rental charges, value-added voice services
and the sale and rental of customer
premises equipment for post-paid and
prepaid PSTN lines, including ISDN
channels and private payphones.
Subscriptions and connections revenue is
principally a function of the number and
mix of residential and business lines in
service, the number of private payphones
in service and the corresponding charges.
The following table sets forth information
related to our fixed-line subscription and
connection revenue during the periods
indicated.
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