Tariffs for fixed to mobile calls reduced

By Rodney Weidemann for Telkom

Johannesburg, 01 Jul 2003

As of today, calls from a fixed-line to a mobile on either the Vodacom or MTN networks will cost less, although the rates to mobile on the Cell C network will remain the same for the next few weeks.

Peter Vella, head of interconnect at Cell C, says the company`s rate reduction has been delayed for technical reasons, but that as of 1 August, it is expected that the interconnect rate for Cell C will drop to a similar level to that of the other two operators.

The interconnect rate reduction follows a request made by both Vodacom and MTN, and Telkom has now received approval from the Independent Communications Authority of SA (ICASA) to lower these tariffs.

Calls from Telkom to both mobile networks will now cost R1.82 for the first 60 seconds and 91c for the next 30 seconds. This represents a reduction of 6c for the first minute, and a further 3c for the next 30 seconds for Telkom to Vodacom calls.

Telkom and MTN announced an initial rate reduction in February, and the latest reduction represents a further saving of 2c for the first minute and 1c for the next 30 seconds for Telkom to MTN calls.

The new rates will only apply to standard time calls, which are from 7am to 8pm on weekdays.

Yvonne Muthien, director of corporate affairs at MTN, says this is good news for consumers.

"Telkom`s reduced rate provides more flexibility and favours consumers who are likely to call an MTN number, leading to significant cost savings on cellular calls," she says.

According to Andrew Weldrick, Telkom`s senior manager for media relations, the parastatal is hoping to reduce Cell C`s rates to the same level at the soonest possible time.

"MTN and Vodacom initially approached us regarding the tariff reduction, but we have now - off our own bat - decided to approach ICASA in order to receive permission to reduce Cell C`s rates as well," says Weldrick.

"We have to first wait for authorisation from ICASA, as all tariff changes have to be approved by the regulator before they can be implemented."

Until ICASA approves a tariff change for Cell C, its rates will remain unchanged at R1.88 per minute for the first 60 seconds and 94c for every 30 seconds thereafter.

Cell C`s Vella says Telkom has informed the company that its rates will also be reduced come the beginning of next month, subject to ICASA`s approval.

"Despite the fact that these tariffs appear to show Cell C as being the most expensive at the moment, the public must remember that these are only interconnect rates. If they look at the rest of Cell C`s tariffs, we certainly believe our prices are the lowest available," he says.