ADSL Broadband uptake: Has it been affected by the drop in fixed-line subscriber lines?

ADSL South Africa (Broadband South Africa), 23 June 2010

Telkom has disconnected a substantial number of fixed-line subscriber lines during the past financial year, mainly due to recessionary pressure on households and the fact that an increasing number of people are switching from fixed-line to mobile services.

Substantial drop… 

It’s clear from Telkom’s latest financial results that a substantial number of fixed-line subscriber lines have gone out of service in the past year.

No less than a 178 000 fixed-line subscriber lines have been disconnected by Telkom during the past financial year. This is substantial if one considers that the number of fixed-line subscriber lines in service expressed as a % of South Africa’s population has dropped to a low 8,7%. As expected, this has negatively impacted on the traffic generated via Telkom’s network if one considers the 7.2% drop in traffic, which in turn has not helped to lift Telkom’s relatively flat revenues (although still at substantial levels). 

In other words, Telkom has disconnected 178 000 fixed-line subscriber lines during the past 12 months which has impacted negatively on their revenues. 

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