Telkom seeks 1.7% tariff increase
23 June 2009
Telecommunications provider Telkom has applied to the Independent Communications Authority of South Africa (Icasa) for a tariff increase of 1.7 percent.
"Telkom's proposed overall annual tariff adjustments filed ... with Icasa are well below the overall increase permitted by the regulator's price control formula," Telkom said in a statement on Monday.
According to the company, Icasa used the formula of consumer price index minus 3.5 percent plus carry-over from the previous year. This refers to the carry-over of allowable rate benefits that were not used in the previous price filing.
"This formula would have allowed Telkom to file an overall increase of 19.7 percent (including carry-over of 14.8 percent) or 4.9 percent (excluding carry-over) using the April 2009 CPI of 8.4 percent, as is required by regulation," Telkom said.
Telkom's new tariffs will become effective on 1 August 2009, pending Icasa's approval
of the price filing.
Proposed increases
Here's what consumers can expect to pay for their landline calls from 1 August, if the increases are approved:
The minimum charge for postpaid local calls (0-50km) will remain unchanged, but the per second tariffs for Standard and Callmore time will increase by 4.2 cents and 2.1 cents per minute respectively.
The tariffs for long distance calls (above 50km) will remain unchanged.
PrepaidFone (weekly and monthly) as well as postpaid residential and business line rental charges will increase by 5.5 percent, while the PrepaidFone Waya-Waya annual subscription will increase from R120.00 to R130.00 per annum.
PrepaidFone local and long distance calls will increase by 10 percent.
Outgoing mobile/cellular calls and outgoing calls to Neotel, other licensed operators and Universal Service Access Licensees will remain
unchanged.
Overall, the impact on international calls rates will be 0 percent, although tariffs to certain destinations could either increase or decrease.
The monthly subscription charges for DSL, Do Broadband and TelkomInternet will remain unchanged.
TelkomInternet all access 2Gb and 3Gb standard offering bandwidth customers will have their offerings upgraded to 3Gb and 5Gb respectively.
Telkom Closer 1 and 2 subscription charges will increase by 7.4 percent and 5.6 percent respectively.
Current tariffs will remain unchanged for the Telkom Closer 3, 4 and 5 calling plans.
From 1 September 2009, Telkom Closer 1 customers will receive free local and long distance weekend calls of up to an hour during Callmore time.
Telkom said that overall, data tariffs in the basket would decrease by six percent.
"Telkom is confident that our proposed price changes
will be approved by Icasa having complied with regulatory prescriptions," the group said.
Sapa
