36 Commitments		Group						Company
		2017 Rm			2016 Rm			2017 Rm			2016 Rm
Capital commitments authorised		8 158			6 574			8 017			6 500
Commitments against authorised capital expenditure		6 594			3 388			6 524			3 379
Authorised capital expenditure not yet contracted		1 564			3 186			1 493			3 121

Capital commitments are largely attributable to purchases of property, plant and equipment and software.

Management expects these commitments to be financed from internally generated cash and borrowings.

		Group
		Total Rm			<1 year Rm			1 - 5 years Rm			>5 years Rm
Operating lease commitments and receivables
2017
Land and buildings		2 913			644			1 522			747
Rental receivable on buildings		(1 236)			(413)			(721)			(102)
Customer premises equipment receivables		(37)			(21)			(16)			–
Vehicles		726			167			557			2
Other		52			12			40			–
Total		2 418			389			1 382			647
Operating lease commitments and receivables
2016
Land and buildings		2 629			441			2 119			69
Rental receivable on buildings		(1 481)			(281)			(1 172)			(28)
Customer premises equipment receivables		(35)			(21)			(14)			–
Vehicles		921			165			756			–
Other		97			78			18			1
Total		2 131			382			1 707			42

		Company
		Total Rm			<1 year Rm			1 - 5 years Rm			>5 years Rm
Operating lease commitments and receivables
2017
Land and buildings		1 420			514			903			3
Rental receivable on buildings		(1 236)			(413)			(721)			(102)
Customer premises equipment receivables		(37)			(21)			(16)			–
Vehicles		718			167			551			–
Total		865			247			717			(99)
2016
Land and buildings		2 078			353			1 680			45
Rental receiable on buildings		(1 481)			(281)			(1 172)			(28)
Customer premises equipment receiables		(35)			(21)			(14)			–
Vehicles		914			162			752			–
Total		1 476			213			1 246			17

Operating leases
The group leases certain buildings, vehicles and equipment. The majority of the lease terms negotiated for equipment-related premises are ten years with other leases signed for five and three years. The majority of the leases contain an option clause entitling Telkom to renew the lease agreements for a period usually equal to the main lease term.

The minimum lease payments under these agreements are subject to annual escalations, which range from 6% to 15%.

Penalties in terms of the lease agreements are only payable should Telkom vacate a premises and negotiate to terminate the lease agreement prior to the expiry date, in which case the settlement payment will be negotiated in accordance with the market conditions of the premises. Future minimum lease payments under operating leases are included in the above note. Onerous leases for buildings, of which the company has no further use, no possibility of sub-lease and no option to cancel, are provided for in full and included in other provisions.

		Group finance lease commitments
		Total Rm			<1 year Rm			1 - 5 years Rm			>5 years Rm
2017
Software
Minimum lease payments		11			6			5			–
Finance charges		(1)			(1)			–			–
Finance lease obligation		10			5			5			–
Equipment
Minimum lease payments		86			30			46			10
Finance charges		(12)			(6)			(5)			(1)
Finance lease obligation		74			24			41			9
Vehicles
Minimum lease payments		18			6			12			–
Finance charges		–			–			–			–
Finance lease obligation		18			6			12			–
2016
Building
Minimum lease payments		17			6			11			–
Finance charges		(2)			(1)			(1)			–
Finance lease obligation		15			5			10			–
Software
Minimum lease payments		84			25			59			–
Finance charges		(13)			(6)			(7)			–
Finance lease obligation		71			19			52			–
Vehicles
Minimum lease payments		19			7			12			–
Finance charges		(2)			(1)			(1)			–
Finance lease obligation		17			6			11			–

		Group finance lease commitments
		Total Rm			<1 year Rm			1 - 5 years Rm			>5 years Rm
2017
Software
Minimum lease payments		11			6			5			–
Finance charges		(1)			(1)			–			–
Finance lease obligation		10			5			5			–
2016
Software
Minimum lease payments		17			6			11			–
Finance charges		(2)			(1)			(1)			–
Finance lease obligation		15			5			10			–

Finance leases
Finance leases on software relates to the lease of Content Delivery Platform software. The lease term for the software is for a period of two years and nine months ending on December 2019.

Telkom has a commitment to migrate customers to new cable systems when the existing cables are decommissioned before the lease period expires. Refer to note 16 for lease payments.

BCX leases certain buildings, vehicles and equipment. The majority of the lease terms negotiated for equipment-related premises range from three to ten years. The majority of the leases contain an option clause entitling BCX to renew the lease agreements for a period usually equal to the main lease term.

The minimum lease payments under these agreements are subject to annual escalations, which range from 7% to 10%.

There are no major restrictions imposed by lease arrangements.