Note 10: Capital additions and disposals

The capital expenditure is due to to the deployment of the Next Generation Network, mobile cellular services and baseline technologies. The lower expenditure is largely due to a more rigorous focus on project selection in accordance with the Group's focus on efficient execution of its strategy.

Mobile capital expenditure decreased due to the shift to a more concentrated rollout in major metropolitan areas. The current focus for the radio access network (RAN) is to complete current projects and to provide capacity to relieve congestion in identified growth areas.

An estimated amount of R193 million (2014:R153 million) included in inventories will be used for Telkom's network expansion in the 2016 financial year of which R137 million was purchased in the current financial year.

Finance charges of R93 million (2014: R93 million) were capitalised to property, plant and equipment and intangible assets in the current financial year.

Intangible assets additions mainly relate to software.