12 Property, plant and equipment		2017									2016
		Cost  Rm			Accumulated depreciation and write-offs Rm			Carrying value Rm			Cost Rm			Accumulated depreciation and write-offs Rm			Carrying value Rm
Group
Freehold land and buildings		6 707			(3 899)			2 808			6 318			(3 801)			2 517
Leasehold buildings		74			(40)			34			47			(37)			10
Network equipment		72 923			(54 718)			18 205			68 937			(51 407)			17 530
Support equipment		5 155			(4 155)			1 000			5 001			(3 936)			1 065
Furniture and office equipment		516			(180)			336			838			(559)			279
Data processing equipment and software		4 123			(2 993)			1 130			4 384			(3 336)			1 048
Under construction		4 241			–			4 241			2 739			–			2 739
Other		592			(428)			164			563			(401)			162
		94 331			(66 413)			27 918			88 827			(63 477)			25 350
Company
Freehold land and buildings		3 408			(1 905)			1 503			6 006			(3 690)			2 316
Leasehold buildings		26			(24)			2			24			(21)			3
Network equipment		71 016			(53 353)			17 663			68 636			(51 243)			17 393
Support equipment		4 671			(3 659)			1 012			4 540			(3 505)			1 035
Furniture and office equipment		135			(107)			28			216			(123)			93
Data processing equipment and software		3 936			(3 116)			820			4 251			(3 481)			770
Under construction		3 807			–			3 807			2 716			–			2 716
Other		430			(327)			103			497			(364)			133
		87 429			(62 491)			24 938			86 886			(62 427)			24 459

Fully depreciated assets at a cost of R2 325 for group and R2 200 million for company (2016: R2 597 million for group and company) were derecognised in the current financial year. This has reduced both the cost price and accumulated depreciation of property, plant and equipment.

The capital expenditure under property, plant and equipment relates to expansions of R2 608 million for group and R2 420 million for company (2016 expansions: R1 669 million for group and R1 604 million for company). Expansion due to maintenance of R4 836 million for group and R4 730 million for company (2016 maintenance: R3 561 million for group and R3 501 million for company).

Property, plant and equipment with a carrying value of R11.4 million for group and Rnil for company (2016: R11.4 million for group and company) has been pledged as security. Details of the loans are disclosed in note 26.

An amount of Rnil million (2016: R9.5 million) under property, plant and equipment disposals relates to the sale of customer premises equipment in terms of a finance lease.

The carrying amounts of property, plant and equipment can be reconciled as follows:

		Group
		Carrying value at begin-ning of year Rm			Additions Rm			Acqui- sition business combi- nation Rm			Transfers Rm			Foreign currency trans- lation Rm			Disposals Rm			Depre-* ciation Rm			Write-offs Rm			Carrying value at end of year Rm
2017
Freehold land and buildings		2 517			178			–			333			(3)			(27)			(186)			(4)			2 808
Leasehold buildings		10			30			–			–			(1)			(2)			(3)			–			34
Network equipment		17 530			3 297			–			1 249			–			–			(3 834)			(37)			18 205
Support equipment		1 065			184			–			85			–			(1)			(324)			(9)			1 000
Furniture and office equipment		279			270			–			(30)			(19)			(17)			(146)			(1)			336
Data processing equipment and software		1 048			147			–			175			–			(11)			(217)			(12)			1 130
Under construction		2 739			3 413			–			(1 835)			–			–			–			(76)			4 241
Other		162			17			–			38			(2)			(9)			(41)			(1)			164
		25 350			7 536			–			15			(25)			(67)			(4 751)			(140)			27 918
2016
Freehold land and buildings		2 086			495			151			80			–			(121)			(174)			–			2 517
Leasehold buildings		74			2			4			–			–			(58)			(12)			–			10
Network equipment		18 093			2 349			52			736			–			(4)			(3 660)			(36)			17 530
Support equipment		1 092			175			35			32			–			(11)			(264)			6			1 065
Furniture and office equipment		42			137			176			(5)			1			(21)			(54)			3			279
Data processing equipment and software		1 001			180			–			107			–			(3)			(239)			2			1 048
Under construction		1 929			1 898			17			(976)			–			(1)			–			(128)			2 739
Other		154			27			27			5			–			(12)			(40)			1			162
		24 471			5 263			462			(21)			1			(231)			(4 443)			(152)			25 350

* Restated, refer to Note 2.6

		Company
		Carrying value at begin-ning of year Rm			Additions Rm			Acqui- sition business combi- nation Rm			Transfers Rm			Foreign currency trans- lation Rm			Disposals Rm			Depre-* ciation Rm			Write-offs Rm			Carrying value at end of year Rm
2017
Freehold land and buildings		2 316			154			(782)			(21)			(160)			(4)			1 503			–			1 503
Leasehold buildings		3			1			1			–			(3)			–			2			–			2
Network equipment		17 393			3 278			1 088			(284)			(3 781)			(32)			17 663			–			17 663
Support equipment		1 035			156			84			–			(254)			(9)			1 012			–			1 012
Furniture and office equipment		93			8			(56)			(1)			(15)			(1)			28			–			28
Data processing equipment and software		770			132			174			(34)			(210)			(12)			820			–			820
Under construction		2 716			3 413			(1 896)			(350)			–			(76)			3 807			–			3 807
Other		133			6			–			–			(35)			(1)			103			–			103
		24 459			7 148			(1 387)			(690)			(4 458)			(135)			24 938			–			24 938
2016
Freehold land and buildings		2 086			493			78			(180)			(161)			–			2 316			–			2 316
Leasehold buildings		72			(1)			–			(58)			(10)			–			3			–			3
Network equipment		18 033			2 322			736			(42)			(3 620)			(36)			17 393			–			17 393
Support equipment		1 091			145			28			–			(235)			6			1 035			–			1 035
Furniture and office equipment		38			70			1			(4)			(12)			–			93			–			93
Data processing equipment and software		920			169			107			(196)			(232)			2			770			–			770
Under construction		1 929			1 891			(976)			–			–			(128)			2 716			–			2 716
Other		154			15			8			(10)			(35)			1			133			–			133
		24 323			5 104			(18)			(490)			(4 305)			(155)			24 459			–			24 459

25 percent of capital expenditure relates to the expansion of existing networks and services. 35 percent of capital expenditure contributed to the new Next Generation Network programme. 25 percent of expansion of the mobile network also contributed to the growth of property, plant and equipment. The balance of 14 percent capital expenditure is mainly attributable to investment in submarine cable systems, network evolution initiatives, sustainment programmes, IT and OSS systems and property upgrade and growth projects. An extensive build programme that provides capacity for growth in services, focusing on Next Generation Network and Mobile technologies, is expected to continue over the next few years.

Changes to the estimated useful lives of property, plant and equipment were necessary due to the transformation programme and the group policies and procedures, resulting in an increase in the depreciation by a further R325 million (2016: R192 million).

The Group and Company has a process of determining whether an asset which incorporates both a tangible and an intangible element, should be recognised as tangible or intangible assets, based on management's judgement and on facts available and the significance of each element to the total value of the asset. Assets with a carrying value to the net amount of Rnil million for Group and Rnil million for Company (2016: R21 million for Group and R18 million for Company) were reclassified from property, plant and equipment to intangible assets in the current year.

Assets with a carrying value to the net amount of R22 million for Group and R22 million for Company relates to inventory that was transferred to property, plant and equipment in the current year. In addition, assets with a carrying value of R12 million for Group and R1 409 million for Company were reclassified from property, plant and equipment to assets held for sale in the current year.