Telkom says it will be discontinuing copper-based fixed-line prepaid service – saying the upgrade will allow for better mobility while making telephone calls.
Customers have expressed mixed reactions to the changes, with some saying the older technology did not require electricity, and have complained that the wireless services are not of a good quality.
Managing Executive at Telkom Bertus van der Vyver says they are offering various types of devices to customers.
Vyver says, “We give customers a few choices, we provide them with a phone that looks and feels like the old phone but it uses a sim card and your 012 or 021 number is then linked to that sim card. It’s got a battery inside so if there is load-shedding it will continue to work. Then what many customers do is they unplug it and walk around and make calls. Then other customers prefer to have it in a cellphone. So we provide them with an entry-level smartphone and they stick a sim card into it and they can carry it in their hand bag if they want to or use it like they would their cellphone.
Below is Telkom’s update on the discontinuation of landlines:
In June, Telkom reported a more than 66% decline in headline earnings citing a decline in fixed voice and the impact of COVID-19 on the business.
The company’s Group CEO Sipho Maseko said earnings were also affected by their restructuring programme. he said they expected further falls in earnings as the impact of COVID-19 is yet to be felt.
The Group’s revenue grew 3% to R43 billion despite a 22% decline in fixed voice revenue.
Maseko said their restructuring program also had a negative impact on profits.
“We took a big charge in terms of paying people who had taken early retirement and severance packages. We also took a much higher provision in anticipation of COVID-19 related expected credit losses. They have not materialised yet, but we are taking a higher charge. And thirdly, we paid a higher tax compared to what we paid before. So, the EBIDA (Earnings before interest, depreciation and amortization) is broadly flat at around 3% and our mobile business is growing,” said Maseko.
Telkom reports a more than 66% fall in headline earnings:
