4. Revenue
Revenue recognition
The group provides fixed-line, mobile, data communication services and communication-related products. The group provides such services to business, residential, wholesale, payphone and mobile customers. Revenue represents the fair value of fixed or determinable consideration that has been received or is receivable.
* Refer to note 5. |
Operating revenue increased due to higher mobile voice and data revenue, higher IT business services revenue and higher equipment sales. This was partly offset by the continuous decline in fixed-line voice revenue and lower data leased line revenue resulting from self-provisioning by other licensed operators.
Change in estimate
In the current financial year the group reassessed its voice customer relationship period (CRP) that is used for the deferral of installation fee revenue. The CRP was changed from nine years to six and a half years. This is more reflective of the modern day customer behaviour within the industry. The change in estimate resulted in revenue increasing by R111 million in the current year.