Telkom has changed the pricing structure for calls from its lines to cellular operators. The new pricing methodology will "bring parity" between cell providers and the fixed line monopoly, and will probably bring in a tidy profit without a rates hike.
Currently calls to cellphones are charged at 40.4 cents for the first 17-odd seconds, and at 2.33 cents per second after that. As of 20 September that will change to a flat charge of R1.60 (R1.40 plus VAT) for the first minute, and thereafter 70 cents for every 30 seconds. While this works out to the same charge, Telkom has calculated that the average household will pay 2.5% more per month, based on the average call duration at present.
The billing method is the same as used by cellular providers for calls to fixed lines.
"Yes, people making calls shorter than one minute will be paying more," says Erna Korff of Telkom. But the average duration of calls to cellphones are 88 seconds, the company says, which means customers will only pay for two seconds of unused time.
All other rates will remain the same.
The change in structure will be made possible by a new billing system, which is to start operation early in September. Telkom says the new technology will allow selective billing, something that could impact Internet users.
"Previously it was expensive and time consuming to introduce promotions and packages," Korff explains. "It is now easier and quite fast."
She says special promotional packages will be offered within the next year and that market research in that field is currently underway. Among the possible packages is one aimed at Internet users, with home users typically dialling in during off-peak times.
Telkom says the change has been approved by the South African Telecommunications Regulatory Authority.
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