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Telkom announces rates for newly-licenced operators

Johannesburg, 08 May 2007

Telkom today announced the rates for calls that originate on the Telkom network but terminate on the networks of newly-licenced telecom providers, including Neotel and Under Serviced Area Licensees (USALs).

Rates are also available for calls to value added network service providers (Vans).

As per the requirements of the industry regulator, the rates were filed with ICASA to come into effect on 23 May 2007. All rates are subject to ICASA's approval.

"Telkom welcomes competition in this vibrant telecommunications environment. As a company that puts high premium on its customers, Telkom will ensure that all customers are informed of the call rates to the different service providers," says Steven Hayward, Telkom Managing Executive for Retail Marketing.

Hayward added that it is important for customers to note the call rate consists of the fee that Telkom charges for making a call to another network, and the termination fee which each service provider charges for access to their network. For instance, when a call is made from a Telkom line to another telecom operator, the call rate consists of charges from both networks (Telkom's charge and the other operator's charge for terminating the call on their network).

Calls from Telkom to Van's customers will be charged at the following rates, including VAT:

Number ranges retail call charges (R/min)

From to standard time

Weekdays from 7:00am to 7:00pm

Callmore time

Weekdays 7:00pm to 7:00am and from Friday 7:00pm to Monday 7:00am.

087 350 0000 087 359 9999 0.82 0.82
087 780 0000 087 781 9999 1.07 1.07
087 805 0000 087 805 0999 1.07 1.07
087 750 0000 087 754 9999 0.59 0.59
087 810 0000 087 810 4999 1.00 0.50
087 700 0000 087 701 9999 1.00 0.50
087 845 0000 087 845 1999 0.90 0.90
087 940 0000 087 940 4999 0.91 0.46
087 870 0000 087 870 1999 0.91 0.46
087 830 0000 087 830 0999 0.73 0.42
087 855 0000 087 855 1999 0.84 0.84
087 960 0000 087 960 6999 0.79 0.42
087 985 0000 087 985 2999 1.07 1.07
087 820 0000 087 820 2999 0.82 0.41

Calls are charged per second with a minimum charge of R0.72, including VAT, for all calls irrespective of distance.

Calls from Telkom to USAL's customers will be charged at the following rates, including VAT:

Retail call charges (R/min)

Peak time

Weekdays from 7:00am to 8:00pm Off Peak Time

Weekdays 8:00pm to 7:00am and from Friday 8:00pm to Monday 7:00am.

Calls to fixed destinations:

015 700 xxxx
018 500 xxxx
039 700 xxxx
047 700 xxxx
047 701 xxxx
034 500 xxxx
034 501 xxxx
039 500 xxxx
0.83 0.43

Calls to mobile destinations:

085 xxx xxxx 1.89 1.17

Calls to fixed destinations - Calls are charged per second with a minimum charge of R0.72, including VAT, for all calls irrespective of when the call is made. Calls to mobile destinations - Calls are charged in increments of one minute for the first minute, and in increments of 30 seconds thereafter.

Calls from Telkom to Neotel customers will be charged at R0.65, including VAT, per minute irrespective of distance or time. Neotel is licensed as South Africa's second national operator.

* All calls to Neotel are charged per second with a minimum charge of R0.72, including VAT.
* Customers should note that Neotel has not requested an off peak rate and as a result there is only one standard rate for all calls.
* Customers should note that telephone numbers on the Neotel network will look very similar to those of Telkom, and it will be difficult to distinguish between the two.

All rates include VAT and only apply to customers connected to automatic exchanges.

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Telkom

Telkom SA is Africa's largest integrated communications company. Telkom provides public switched communication services in SA and offers fixed-line voice and data services, branded as Telkom. Telkom participates in the South African mobile communications market through its 50% shareholding in Vodacom, the largest mobile communications network operator in SA, based on total estimated customers. Telkom's infrastructure is composed of terrestrial, undersea and satellite communications and pathways, broadband circuits and connections that enable voice, data and video communication services. Telkom has about 4.7 million telephone access lines in service as of March 2006. Telkom had consolidated operating revenue of R47.6 billion for the year ended 31 March 2006. Telkom's subsidiaries include Telkom Directory Services, which provides complete yellow and white pages directory services as well as electronic services, and Swiftnet. Swifnet trades under the name of FastNet Wireless Service and provides synchronous wireless access on Telkom's X25 network, Saponet-P, to its customers. Telkom strongly believes in corporate social investment and has a dedicated wing, the Telkom Foundation, which focuses in investing and developing previously disadvantaged South African communities. The foundation spend R50.2 million in the year ended 31 March 2006 on projects relating to ICT planning and infrastructure roll-out; education and training; and empowerment of women, children and people with disabilities.

Telkom has always viewed SA's effective transformation as imperative for its sustainable long-term growth. Empowerment and the transformation of the economy are central to Telkom's BEE strategy. During the year ended 31 March 2006, 67 % of Telkom's procurement spend was on BEE companies. In addition, Telkom trained 18 black SMMEs and a total of 1 181 suppliers at an estimated cost of R7.1 million.

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