South African telecommunications giant Telkom has announced its proposed tariffs to come into effect from 1 September, subject to approval by the Independent Communications Authority of South Africa (ICASA).
In terms of the tariff filing, the country`s fixed-line monopoly has not requested an increase to any call charges, and has proposed a reduction in ADSL services of up to 31% and a drop of up to 28% in international private leased circuit (IPLC) charges. The ADSL and IPLC tariff changes are to come into effect by 1 August.
This will be the second ADSL price reduction this year, and entry-level broadband product HomeDSL 192 will now cost R270 a month.
The price for HomeDSL 384, Telkom`s middle-level broadband, will decrease from R449 to R359 a month. HomeDSL 512 and BusinessDSL 512 super-fast ADSL broadband offerings will be reduced to R477 a month.
The proposed price reduction for IPLCs via submarine cable and satellite follows a 23% decrease in 2004.
Overall, Telkom says in a statement, the group has filed for a price decrease of 3% for its basket services. This follows ministerial approval of the new Telkom price control regulations which cap price increases at 3.5% below the April Consumer Price Index for the new price control year commencing 1 August 2005 to 31 July 2006.
However, the new prices will only be implemented on 1 September 2005 due to a delay in finalising the regulations, says Telkom`s senior specialist, media relations, Xolisa Vapi.
If approved by ICASA, the proposed reductions will see local calls decrease by 5%, to 38c a minute during standard time, while the minimum charge remains unchanged at 59c.
Vapi notes that long-distance calls would decrease by 10%, from 89c to 80.1c per minute, during standard time; and from 44.5c to 40.1c during Callmore time.
In January 2005, Telkom dropped long-distance call rates by 10c, from 99c to 89c a minute, during standard time.
Telkom has also proposed an average of 10.9% price decrease for all data products, Vapi says, while international call rates remain unchanged following a 28% price decrease on 1 January.
Telkom chief sales and marketing officer Nombulelo Moholi says the new tariffs are part of Telkom`s on-going strategy to manage down its prices.
"Although the overall impact of the new proposed prices will differ from customer to customer, depending on the type of services they utilise, the average bill should indicate an overall reduction," says Moholi.
She says the increase in rental and installation charges should be seen against the backdrop of losses incurred to provide these services.
Moholi explains that Telkom is adjusting its prices for basket services for the second time this year due to changes in the regulations. ICASA is expected to rule on the proposed tariffs either this week or next.
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