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Telkom struggling?
2011-11-28
Telkom released a collection of troubling fiscal results on Monday twenty-one Nov , showing a decrease in cash and profit and a rise in operating costs. One of the toughest issues for Telkom is holding onto customers. During the last 12 months Telkom lost 161,000 fixed line customers, following similar reject the year before. During the past decade Telkom has lost well over 1,000,000 fixed line customers, accounting for over twenty percent of their total customer base. Declining fixed line customer numbers make a contribution to the organization's declining voice cash, nevertheless it is in no fashion the main reason why Telkom is losing voice money. Telkom's total fixed-line traffic ( millions of minutes ) dropped by 6.9% during the past 12 months. There had been an especially enormous decline in neighbourhood calls ( down 19.2% ) and outgoing world calls ( down 25.1% ). Considering that there had been 'only' a 3.8% decline in fixed line customers, it implies the voice minutes were possibly being cannibalized by corporations offering alternative voice offerings like Neotel, Vodacom Business, ECN, Web Solutions and Vox Telecomms . Many firms are providing voice-over-IP ( VoIP ) services using Telkom's ADSL services at lower rates than Telkom's normal analog voice offering ( which comes with any ADSL line ). This indicates that plenty of Telkom's fixed line customers are using alternative telecoms suppliers for their voice wants eating into Telkom's main income stream. According to one industry player the 'alternative' fixed line voice market is growing swiftly. "Excluding least cost routing ( LCR ) this is now a serious number potentially in the area of two hundred million minutes a month," he announced. So while Telkom is working diligently to cling on to their fixed line customers amid raised competition from wireless and mobile suppliers and wire burglary, they are by no means warranted of voice money from their existing fixed line buyers.
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