| Notes to the consolidated annual financial statements l Note 4 |
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| 4 Operating revenue |
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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.
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Group |
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Company |
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2017
Rm |
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2016
Rm |
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2017
Rm |
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2016
Rm |
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40 970 |
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37 325 |
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35 422 |
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32 106 |
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| Voice |
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14 586 |
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15 299 |
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15 849 |
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15 309 |
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| Interconnection |
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1 102 |
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1 267 |
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1 114 |
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1 270 |
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| Data* |
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12 147 |
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11 477 |
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12 933 |
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11 501 |
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| Customer premises equipment |
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3 822 |
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3 175 |
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4 078 |
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3 175 |
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| Sundry revenue |
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1 759 |
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1 677 |
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681 |
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537 |
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| Information technology* |
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7 554 |
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4 430 |
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767 |
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314 |
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| * |
In order to achieve more relevant presentation a decision was made to reclassify revenue from data to information technology amounting to R314 million. |
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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. |
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| Notes to the consolidated annual financial statements l Note 4 |
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