Telecommunications group Telkom said that materials and maintenance costs had increased by 12% over the last six months, which ended in September, to a total spend of R1,04-billion.

"Cable theft is a significant problem for us, it is up about 33% year-on-year, and cost the company about R140-million - excluding any labour costs, and any loss of revenue," explained Telkom acting CFO Deon Fredericks.

He added that it cost the company an additional R150-million to safeguard the cables. "It is a significant problem for us in terms of service delivery, and has an impact on our costs."

The company posted an overall decrease in headline earnings a share of 15,1% for the half-year ended September 2007, citing increased competition in telecommunications, price reductions and escalating operational expenses as the reasons for this decrease. Investing activities increased by 71,3%, while cash flow financing activities went up by 653,2% during the interim period.

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