3G

The generic term, 3G, is used to denote the next generation of mobile systems designed to support high-speed data transmission (144 Kbps and higher) and Internet Protocol (IP) based services in fixed, portable and mobile environments. As envisaged by the ITU, the 3G system will integrate different service coverage zones and be a global platform and the necessary infrastructure for the distribution of converged service, whether mobile or fixed, voice or data, telecommunications, content or computing.

ACCESS NETWORK

The Access Network is the portion of the communications network that connects the subscriber (consumer/business) to the service provider’s local exchange, commonly termed the local loop, last mile or first mile.

ADSL (ASYMMETRICAL DIGITAL SUBSCRIBER LINE)

ADSL is a broadband access standard which uses existing copper lines to offer high-speed digital connections over the local loop. ADSL transmits data asymmetrically, meaning that the bandwidth usage is much higher in one direction than the other. ADSL provides greater bandwidth from the exchange to the customer (ie. downloading) than from the customer to the exchange (ie. sending).

ADSL2+

ADSL2+ double the bandwidth used for downstream data transmission, effectively doubling the maximum downstream data rates, while also offering the ADSL2 standard’s improvements.

ARPU

Average monthly revenue per customer, or ARPU, is calculated by dividing the average monthly revenue during the period by the average monthly total reported customer base during the period.

ATM (ASYNCHRONOUS TRANSFER MODE)

ATM is a high-speed Wide Area Network (WAN), connection oriented, packet-switching data communications protocol that allows voice, data and video to be delivered across existing local and Wide Area Networks. ATM divides data into cells and can handle data traffic in bursts. It is asynchronous, in that the stream of cells from one particular user is not necessarily continuous.

BANDWIDTH

Bandwidth is a measure of the quantity of signals that can travel over a transmission medium such as copper or a glass fibre strand. It is the space available to carry a signal. The greater the bandwidth, the greater the information carrying capacity. Bandwidth is measured in bits per second.

BEPS

Basic earnings per share.

BNG TECHNOLOGY

The Broadband Network Gateway (BNG) is a multi-service edge router. The BNG multi-service edge router replace the Broadband Remote Access Services (BRAS) in the network architecture and significantly enhances the features to support consumer-residential services, Carrier Ethernet and IP VPN business services, as the aggregation router in mobile backhaul applications, or as a mobile gateway for wireless networks.

BROADBAND

Broadband is a method of measuring the capacity of different types of transmission. Digital bandwidth is measured in the rate of bits transmitted per second (bps). For example, an individual ISDN channel has a bandwidth of 64 Kbps, meaning that it transmits 64,000 bits (digital signals) every second.

CAGR

Compound Annual Growth Rate.

CARRIER PRE-SELECTION

Carrier pre-selection is usually initiated by the telecoms regulator. It enables individuals to choose which telecom will carry their traffic (mainly long distance) by a signalling contract rather than having to dial extra digits.

CDMA (CODE DIVISION MULTIPLE ACCESS)

CDMA is one of many technologies for digital transmission of radio signals between, for example, mobile telephones and radio base stations. In CDMA, which is a spread-spectrum modulation technology, each call is assigned a unique “pseudorandom” sequence of frequency shifts that serve as a code to distinguish it. The mobile phone is then instructed to decipher only a particular code to pluck, as it were, the right conversation off the air.

CIRCUIT

A circuit is a connection or line between two points. This connection can be made through various media, including copper, coaxial cable, fibre or microwave. A telephone exchange is a circuit switch.

DECT (DIGITAL ENHANCED CORDLESS TELECOMMUNICATIONS)

DECT is the standard for cordless telephones. DECT phones communicate using the PSTN (Public Switched Telephone Network) through a small base station in the home or office and have a working radius of between 50 and 300 metres.

DSLAM

The Digital Subscriber Line Access Multiplexer (DSLAM) is a network device that receives signals from multiple customer Digital Subscriber Line (DSL) connections, and puts these signals on a high-speed backbone line using multiplexing techniques.

DWDM TECHNOLOGY

Dense Wavelength Division Multiplexing (DWDM) is a fibre optic transmission techniques that makes it possible to transmit data simultaneously, for different sources, using a separate light wavelength for each source across a single fibre. This technology increases the capacity of the fibre infrastructure without the operator having to deploy additional fibres.

EBITDA

EBITDA represents profit for the year before taxation, finance charges, investment income and depreciation, amortisation, impairment and write-offs.

EDGE (ENHANCED DATA FOR GSM EVOLUTION )

EDGE is a technology designed to enhance GSM and TDMA systems with respect to data rates and is widely considered to be the GSM evolution beyond GPRS. It enhances the data capabilities of GSM and TDMA systems by altering the RF modulation scheme to allow greater data rates per time slot. Because it uses a different modulation technique across the air-interface, EDGE requires different mobile terminals/ handsets than those designed for the GSM air-interface.

EFFECTIVE TAX RATE

The effective tax rate is the tax charge in the statement of profit or loss divided by pre-tax profit.

ETHERNET

Ethernet is a protocol that defines how data is transmitted to and received from LANs. It is the most prevalent LAN protocol, with speeds of up to 10 Mbps.

EVDO (EVOLUTION-DATA OPTIMISED OR EVOLUTIONDATA ONLY )

EVDO is a telecommunications standard for the wireless transmission of data through radio signals, typically for broadband internet access. It uses multiplexing techniques including code division multiple access (CDMA) as well as time division multiple access (TDMA) to maximise both individual users’ throughput and the overall system throughput.

FDPS

Fibre optic Distribution Points (FDPs) is the fibre endpoint in the Access Network closest to the customer from which Telkom will build out the last mile to the customer premise.

FIBRE OPTICS

Fibre optics is where messages or signals are sent via light rather than electrical signals down a very thin strand of glass. Light transmission enables much higher data rates than conventional wire, coaxial cable and many forms of radio. Signals travel at the speed of light and do not generate nor are subject to interference.

FIBRE RINGS

Fibre rings have come to be used in many fibre networks as it provides more network resiliency: if there is a failure along a route and a ring is broken, the direction of the traffic can be reversed and the traffic will still reach its final destination.

FIXED ACCESS LINES

Fixed access lines comprise public switched telecommunications network lines, or PSTN lines, including integrated services digital network channels, or ISDN channels, and public and private pay phones, but excluding internal lines in service.

FIXED ACCESS LINES PER EMPLOYEE

To calculate the number of access lines per employee the total number of access lines is divided by the number of employees at the end of the period.

FIXED-LINE PENETRATION

Fixed-line penetration or teledensity is based on the total number of telephone lines in service at the end of the period per 100 persons in the population of South Africa. Population is the estimated South African population at the mid-year in the periods indicated as published by Statistics South Africa, a South African Government department.

FIXED-LINE TRAFFIC

Fixed-line traffic, other than international outgoing mobile traffic, international interconnection traffic and international Voice over Internet Protocol traffic, is calculated by dividing traffic operating revenue for the particular category by the weighted average tariff for such category during the relevant period. Fixed-line international outgoing mobile traffic and international interconnection traffic are based on the traffic registered through the respective exchanges and reflected in international interconnection invoices. International Voice over Internet Protocol traffic is based on the traffic reflected in invoices.

FMC

Fixed Mobile Convergence (FMC) is an environment/infrastructure that enable the transparent use of voice and data applications across fixed and mobile access points.

FRAME RELAY

Frame relay is a widely implemented telecommunications service designed for cost-efficient data transmission for data traffic between local area networks and between end-points in a wide area network. The network effectively provides a permanent circuit, which means that the customer sees a continuous, dedicated connection, but does not pay for a full-time leased line.

FTR

Fixed termination rates

FTTX

Fibre to the X (FTTx) refers to all possible fibre optic topologies, from a service provider to its customers, based on the location of the fibre’s termination point. These include fibre-to-the-curb (FTTC: fibre-to-the-home (FTTH); fibre-to-the-building (FTTB); fibre-to-thepremise (FTTP); et al.

GPRS (GENERAL PACKET RADIO SERVICE )

GPRS is a packet rather than a circuit-based technology. GPRS allows for faster data transmission speed to both GSM and TDMA (IS-136) networks. GPRS is a packet-switched technology that overlays the circuit-switched GSM network. The service can be introduced to cellular networks by infrastructure.

GSM (GLOBAL SYSTEM FOR MOBILE)

GSM is a second generation digital mobile cellular technology using a combination of frequency division multiple access (FDMA) and time division multiple access (TDMA). GSM operates in several frequency bands: 400 MHz, 900 MHz and 1800 MHz. On the TDMA side, there are eight timeslots or channels carrying calls, which operate on the same frequency. Unlike other cellular systems, GSM provides a high degree of security by using subscriber identity module (SIM) cards and GSM encryption.

HEPS

Headline earnings per share.

HSDPA

High Speed Downlink Packet Access.

IAS

International Accounting Standards.

IFRS

International Financial Reporting Standards.

INTERCONNECTION

Interconnection refers to the joining of two or more networks. Networks need to interconnect to enable traffic to be transmitted to and from destinations. The amounts paid and received by the operators vary according to distance, time, the direction of traffic, and the type of networks involved.

INTEREST COVER

Interest cover is calculated by dividing EBIT by the net interest charge in the statement of profit or loss. It is a measure of income gearing.

ISDN (INTEGRATED SERVICES DIGITAL NETWORK)

ISDN is a data communications standard used to transmit digital signals over ordinary copper telephone cables. This is one technology for overcoming the “last mile” of copper cables from the local exchange to the subscriber’s premises, which has proved a bottleneck for internet access, for example. ISDN allows to carry voice and data simultaneously, in each of at least two channels capable of carrying 64 Kbps. It provides up to 128 Kbps and a total capacity of 144 Kbps exist.

ITU (INTERNATIONAL TELECOMMUNICATIONS UNION)

ITU is the global technical standard-setting body for telecommunications services.

LAN (LOCAL AREA NETWORK)

A LAN is a group of devices that communicate with each other within a limited geographic area, such as an office.

LEASED LINE

A leased line is a telecommunications transmission circuit that is reserved by a communications provider for the private use of a customer.

LIBOR

London Interbank Offer Rate.

LOCAL LOOP

The local loop is the final connection between the exchange and the home or office. It is also known as the last mile.

lTE (LONG-TERM EVOLUTION )

Long-term evolution, marketed as 4G LTE, is a standard for wireless communication of high-speed data for mobile phones and data terminals.

MICROWAVE

Microwave is radio transmission using very short wavelengths.

MMS (MULTIMEDIA MESSAGING SERVICES)

MMS, a service developed jointly together with 3GPP, allows users to combine sounds with images and text when sending messages, much like the text-only SMS.

MCO

Mobile cellular operators

MOBILE CHURN

Churn is calculated by dividing the average monthly number of disconnections during the period by the average monthly total reported customer base during the period.

MSAN

The multi-Service Access Node provides the boundary between customer interface and the transport network. It makes it possible to offer the customer traditional voice, high-speed DSL and new emerging IP-based services all delivered from the same hardware.

MTR

Mobile termination rates

NET DEBT

Net debt is all interest-bearing debt finance (long-term and short-term) less cash and marketable securities.

NET DEBT TO TOTAL EQUITY

Net debt to total equity is a measure of book leverage (gearing): net debt in the statement of financial position divided by total equity (the sum of shareholders’ funds plus minority interests).

NGN (NEXT GENERATION NETWORK)

A Next Generation Network is a packet-based network able to provide services including telecommunication services and able to make use of multiple broadband, QoS-enabled transport technologies. It offers unrestricted access by users to different service providers.

NOC

The Network Operations Centre (NOC) is the place from which network support staff monitors and maintains the telecommunications network.

OPERATING FREE CASH FLOW

Operating free cash flow is defined as cash flow from operating activities, after interest and taxation, before dividends paid, less cash flow from investing activities.

OLO

Other licensed operator.

PACKET SWITCHING

Packet switching is designed specifically for data traffic, as it cuts the information up into small packets, which are each sent across the network separately and are then re-assembled at the final destination. This allows more users to share a given amount of bandwidth. X.25, ATM and frame relay are all packet switching techniques.

POP (POINT OF PRESENCE)

A POP is a service provider’s location for connecting to users. Generally, POPs refer to the location where people can dial into the provider’s computer. Most providers have several POPs to allow low cost local access via telephone lines.

PSTN (PUBLIC SWITCHED TELEPHONE NETWORK)

The PSTN is a collection of interconnected voice telephone networks, either for a given country or the whole world. It is the sum of the parts. It was originally entirely analogue, but is now increasingly digital (indeed in many developed countries digitisation has reached 100%); these networks can be either state-owned or commercially owned. PSTN is distinct from closed private networks (although these may interconnect to the PSTN) and from public data networks (PDN).

REVENUE PER FIXED ACCESS LINE

Revenue per fixed access line is calculated by dividing total fixed-line revenue during the period, excluding data and directories and other revenue, by the average number of fixed access lines during the period.

ROA (RETURN ON ASSETS)

Return on assets is calculated by dividing operating profit by assets affecting operating profit.

SDH (SYNCHRONOU S DIGITAL HIERARCHY )

SDH is used in most modern systems, where multimedia can be transmitted at high speeds. The networks are shaped in a ring, so that if there is a problem, the traffic can be redirected in the other direction and the caller will not detect the interruption.

SMS (SHORT MESSAGE SERVICE )

SMS refers to short, usually text-based messages sent by or to a wireless subscriber. They are not delivered to the recipient instantly and have some degree of transmission time delay. SMS messages are usually limited to total character lengths of 140 to 160 characters.

SWITCH

A switch is a computer that acts as a conduit and director of traffic. It is a means of sharing resources as a network.

TOTAL INTEREST-BEARING DEBT

Total interest-bearing debt is defined as short and long-term interest-bearing debt, including credit facilities, finance leases and other financial liabilities.

TRANSMISSION NETWORK

The transmission network is the portion of the communications network, consisting of digital communication equipment, intended to function as the transport infrastructure for all telecommunication services.

UC

Unified Communications (UC) is the integration of enterprise communications activities which enables situational awareness across people and information within those activities; it also makes it possible to deliver these services seamlessly across multiple applications and platforms.

VOIP (VOICE OVER INTERNET PROTOCOL )

Voice over Internet Protocol is a protocol enabling voice calls to be made over the internet. Rather than a dedicated circuit being set up between the caller and receiver, as with ordinary phone calls, the voice conversation is digitised and transmitted over Internet Protocol using packet-switched data networks.

WAN (WIDE AREA NETWORK)

A WAN comprises LANs in different geographic locations that are connected, often over the public network.

WAP (WIRELESS APPLICATION PROTOCOL )

WAP is an application environment designed to bridge the gap between the mobile and Internet worlds. It is a set of communication protocols for wireless devices designed to provide vendor-neutral and technology-neutral access to the Internet and advanced telecommunications services.