Demand for landline services drops

Brian Benza | Monday March 31, 2014 11:16

BTCL executives including MD Paul Taylor (white shirt) and chairman , Len Makwinja (black jacket) during Friday's result briefing. PIC KAGISO ONKATSWITSE

Announcing BTCL’s financials for the year up to March 2013 in Gaborone on Friday, Managing Director Paul Taylor said fixed line revenues for both national and international voice calls fell by two and seven percent respectively.

In contrast, mobile services revenue and data services rose by 58 percent and 12 percent respectively to compensate for the decline in landline calls.

“In line with worldwide trends, prospects for fixed line voice based revenues are declining due to the growth in take up and use of a range of digital communications services. “While our fixed line voice revenues fell, revenue from data and private circuits saw a 12 percent increase rising to P510 million. “Mobile network revenue on the other hand recorded a 58 percent jump to P325 million,” said Taylor.

Reflecting the same trend internationally, South Africa’s Telkom recorded a 9.6 percent decrease in fixed-line voice usage revenue in 2013 largely as a result of a 4.9 percent decrease in voice minutes mainly due to continued mobile substitution.

According to US telecommucations company, Neustar, global fixed line voice services have been falling by an average 6-8 percent annually in the past few years.

Going forward, Taylor said Botswana’s low Internet penetration rate of 10 percent presents BTCL with potential for growth in data based services.

Through its three year road map, BTCL is in the process of combining its mobile, fixed and broadband products into attractive packages in a bid to become a fully customer centric fixed mobile and converged organisation. “Our strategic direction points to revenues derived from data services as a key growth area,” he added.

In 2014, BTCL will invest nine million Euros (P110 million) to boost the quality of its mobile network services.