For the year ended 31 march 2016
2016Rm |
Restated |
|
|---|---|---|
| Capital additions and disposals | ||
| Property, plant and equipment | ||
| Additions | 5 263 | 4 039 |
| Disposals | (231) | (16) |
| 5 032 | 4 023 | |
| Intangible assets | ||
| Additions | 726 | 987 |
| Disposals | - | - |
| 726 | 987 | |
|
The capital expenditure relates to the deployment of the next generation network, mobile cellular services and converged service offerings. The higher expenditure is largely due to the deployment of fibre and other technologies to support the growing data services business, internet capacity growth, links to the mobile cellular operators and access line deployment in selected high-growth commercial and business areas. An estimated amount of R101 million (31 March 2015: R193 million) included in inventories will be used for Telkom's network expansion of which R83 million (31 March 2015: R137 million) was purchased in the current financial year. Finance charges of R103 million (31 March 2015: R93 million) were capitalised to property, plant and equipment and intangible assets in the current financial year. |
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