Telkom Prepaid Landline

I apologise if this is in the wrong category. I received a call from Telkom to say that I will no longer be able to use my prepaid line at the end of February 2016. They told me I need to go to Telkom where I will receive a sim card and a new phone and I will pay R198 for a year's rental. Is this true? It doesn't make sense to me. I have a landline, what do I need a sim and another phone for now?

Thanks guys.