Notes to the consolidated annual financial statements | Note 24

  Rm 2018   2017  
24. Commitments        
24.1 Capital commitments 1        
  Capital expenditure contracted for but not yet incurred 2 692   2 361  
  Capital commitments for property, plant and equipment and computer software will be financed through internal cash generation and bank funding.        
 
Note:
1. The Group entered into a facilities leasing, services and roaming agreements with Wireless Business Solutions (Pty) Limited which will result in R1 225 million (2017: R1 740 million) future capital expenditure for the Group. The majority of this expenditure is non-current. Capital commitments do not include the aforementioned.
       
24.2 Operating lease commitments        
  Future minimum lease payments under non-cancellable operating leases comprise:        
  Within one year 1 764   1 992  
  Between one and five years 6 587   7 031  
  After five years 3 180   3 975  
    11 531   12 998  
 

Operating leases include leases of certain transmission and data lines, offices, distribution outlets, sites, buildings, office equipment and motor vehicles. The remaining lease terms vary between six months and 15 years (2017: three months and 15 years) with escalation clauses that vary from an annual fixed escalation rate between 7.0% and 12.0% (2017: 7.0% and 10.0%) per annum or an annual variable consumer price index rate. Various options to renew exist.

The total of future minimum sublease payments expected to be received under non-cancellable subleases is R1 898 million (2017: R1 533 million).
24.3 Other commitments
 

Other commitments include commitments for purchases of handsets; other goods and services; and activation commissions.

As at 31 March 2018, purchase commitments amount to R28 658 million (2017: R11 089 million) of which R8 557 million (2017: R6 704 million) relate to payments due within 12 months. The increase relates mainly to the commitment with regards to the roaming agreement with Rain. The net commitment including committed revenue amounts to R2 143 million (Committed cost of R17 174 million and committed revenue of R15 032 million).
   

Notes to the consolidated annual financial statements | Note 24