Switch cuts tariffs

Johannesburg, 07 Apr 2009

Switch Telecom, a local provider of telecommunications services, has slashed certain call tariffs from 1 April.

Switch Telecom says the decision to do this comes from the change in the regulatory landscape in the country, which has enabled the telco to drive its costs down. Greg Massel, MD of the independent telecoms service provider, says: "It's barely two months after SA's value-added network service (VANS) providers were able to convert their VANS licences into electronic communication network services and electronic communications services licences, and we're already seeing an effect on telecoms tariffs in SA.”

Massel adds: "The issuing of these new licences signalled the start of real competition in SA's telecoms market, and seems set to make more of an impact on communication and call costs than the many years of so-called managed liberalisation that the market has endured until now."

Peak calls to Telkom landlines are being reduced by 20.8%, while off-peak calls to landlines and cellphones are being reduced by 10.3% and 3.4% respectively. Switch is also harmonising the classification of 'peak' and 'off-peak' times across all networks. Peak rates shall apply from 7am to 8pm on weekdays. Off-peak rates shall apply at all other times.

International tariffs have also been revised, with certain destinations increasing in cost and others decreasing. It's cheaper to call certain European and North American destinations than South African numbers, according to Switch Telecom.

The telco is also introducing the option of an alternative call package with per-second billing. Call tariffs on this package are higher than the standard package, but calls are billed per second rather than per minute. The company expects call centres will benefit from the new per-second option.