Picture: for illustration purposes
Over the past two decades, South Africa's state-owned telephony provider, Telkom, has seen a continual decrease in its fixed-line subscriber base. With steadfast improvements in Voice-Over-Internet Protocol (VoIP) technology, VoIP providers note that this newer tech-savvy calling is rapidly surpassing its traditional counterpart.
Telkom’s fixed-line customers have decreased dramatically from nearly 5.5 million in March 2000 to less than 800,000 in March 2023. The decline, although gradual at first, accelerated after 2019, with an annual loss of around 300,000 subscribers. The company witnessed its largest subscriber loss of approximately 665,000 fixed-line customers between March 2019 and March 2020.
Several reasons account for the considerable decline in fixed-line access, such as rampant cable theft and vandalism, increased uptake of mobile devices, and the replacement of DSL with fibre as the preferred form of fixed broadband home connection.
Nic Laschinger, CTO at Euphoria Telecom, confirmed that VoIP call quality has vastly improved over the past decade. "Digital calling," he says, "has largely overtaken analogue channels in both the commercial and residential markets." The introduction of 5G and further advancements in network technology would only further improve VoIP call quality.
Significant demand growth for VoIP’s services has been reported, especially since the Covid-19 pandemic. Gregory Massel, director at Switch Telecom, insisted that Telkom’s copper networks are effectively obsolete and that many businesses have switched to the cost-effective and advanced cloud telephony solutions provided by VoIP providers.