Telecommunications player Telkom’s group capital expenditure (capex) increased by 6% to R4,4-billion over the six months ended September, of which R2,6-billion was attributed to fixed-line capex, R1,6-billion to mobile capex, and R148-million to other operations.

Acting CEO Reuben September noted that the company had spent a significant amount of capital on the rollout of the next generation network (NGN).

“You have to be a player in the NGN space for several reasons. Certainly improvement in our customer service, and its adds to the ability for us to retain our revenues as the legacy capacity diminishes over time, and lowers the costs to operate the network,” he added.

Telkom is in the third year of its regeneration programme, and claimed to be on track with developments.

“Some of the achievements so far, are a bandwidth increase in the network, which has certainly had a positive impact in our ability to serve customers, and our ability to provide fully converged services,” said September.

The company said that national and local transport network has increased by 167 nodes, with a bandwidth potential to increase by 17%, or 1,2Tbit/s.

The bandwidth potential is expected to increase by 2,2Tbit/s or 47% for the next twelve months. This meant that the company would increase its national layer bandwidth potential by 1 000% over the next two years, and increase its bandwidth potential in metropolitan areas by 1 600% over the next two years.

“Broadband has become a very important segment of our business,” reiterated September, and added that the capex plan was to ensure the provision of the capacity and capability in the network.