Telkom confident over prices

2010-06-18 18:27
Johannesburg - JSE-listed communications services provider Telkom is confident that its price changes will be approved by the Independent Communications Authority of South Africa (Icasa).

"Telkom has decided to file an overall increase of only 0.8% in the interests of customer-centricity as well as our commitment to the process of ensuring affordable telecommunications access in the country," said its managing director Nombulelo Moholi.

There would be no change to its monthly Digital Symmetrical Line and Do Broadband subscriptions, monthly internet subscription charges, post-paid local and long-distance calls, outgoing mobile calls and monthly subscription for Closer 2,3,4 and 5.

Data tariffs would drop by 2.1% overall.

In a statement, Telkom said its tariff adjustments were filed with Icasa on Friday. Subject to Icasa's approval, the new tariffs would become effective from August 1.

Approval

"Having complied with all regulatory prescriptions, Telkom is confident that our proposed price changes will be approved by Icasa," Moholi said.

In terms of Icasa's price control formula, the allowable overall increase for Telkoms basket of products was 19.3%.

Moholi said Telkom had ensured that the tariff adjustment was below consumer price inflation.

International fixed line outgoing calls to some destinations (including the UK, US, Australia and China) would either remain unchanged or show significant decreases.

"Effectively, the overall adjustment for international calls will be zero percent but tariffs to certain destinations - such as Zimbabwe and Namibia - will increase," Moholi said.

Outgoing mobile calls as well as calls to Neotel, other licensed operators and under-serviced area licence operators remained unchanged.

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