Telkom closing in on a million homes passed with fibre

  • Telkom CEO Serame Taukobong
Date:2 August 2022 Author: Rienk De Beer

With a 45 percent increase from a year ago, Telkom disclosed on Tuesday that its fibre network is now accessible to more than 890 000 residences in South Africa.

The telecommunications operator stated in a quarterly financial update for the period ending in June 2022 that there were approximately 415 000 homes connected to its fiber infrastructure, for a connectivity rate of 46.6%, meaning that almost one in two residents use the service where it is available.

Wholesale sector Openserve reported a 6.5 percent increase year over year and the continued need for data consumption, as evidenced by the 18.9% increase in fixed data traffic to 452 petabytes, is what drives Openserve’s expectation that this trend will continue.

Telkom CEO Serame Taukobong

Even while copper-based voice revenues kept falling sharply, they currently account for only 7% of Telkom’s consumer and small business unit’s gross operating revenue.

“Although fixed broadband continued to decline by 10.3% year on year, as we de-risk ourselves from copper-based services, this translated to a decline of only 2.9% when comparing the first quarter of the 2023 financial year with Q4 FY2022. This is due to the aggressive play in fibre to the home as it begins to gain prominence against traditional copper-based DSL services,” according to Telkom.

Despite what it called a “intensely competitive landscape,” Telkom also reported positive growth in its mobile customer base, according to techcentral.co.za. The business, which is in discussions with rival MTN Group about a potential merger, reported that the number of active mobile subscribers increased by 7.8% on a year-over-year basis to 17.3 million, solidifying its position as the third-largest mobile player in South Africa behind Vodacom and MTN and ahead of Cell C.

The combined, post-paid, and prepaid average revenue per user was R88.53. Prepaid subscribers increased by 8% to 2.8 million, and prepaid users increased by 7.7% to 14.5 million.

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