Notes to the consolidated annual financial statements l Note 4

4 Operating revenue  
Revenue recognition
The group provides fixed-line, mobile, data communication services and communication-related products to business, residential, wholesale, payphone and mobile customers as well as IT services. Revenue represents the fair value of fixed or determinable consideration that has been received or is receivable.


    Group     Company  
      2017
Rm
    2016
Rm
    2017
Rm
    2016
Rm
 
      40 970     37 325     35 422     32 106  
Voice     14 586     15 299     15 849     15 309  
Interconnection     1 102     1 267     1 114     1 270  
Data*     12 147     11 477     12 933     11 501  
Customer premises equipment     3 822     3 175     4 078     3 175  
Sundry revenue     1 759     1 677     681     537  
Information technology*     7 554     4 430     767     314  
* In order to achieve more relevant presentation a decision was made to reclassify revenue from data to information technology amounting to R314 million.
  Operating revenue increased due to higher mobile data revenue, higher equipment sales and the BCX revenue. This is partially offset by the decline in fixed-line voice revenue and lower connectivity revenue.

In the current financial year wholesale reassessed its leased lines customer relationship period (CRP) that is used for the deferral of installation fee revenue. The CRP was changed from five years to four years. This is more reflective of the modern-day customer behaviour within the industry. The change in estimate resulted in revenue increasing by R20 million in the current year.

Included in Telkom company revenue from external customers is revenue which relates to Enterprise customer contracts which were sold to BCX on 1 November 2016 by Telkom.

Notes to the consolidated annual financial statements l Note 4