Telkom has promised to appeal a ruling by the Advertising Standards Authority of SA (ASA) that its advertising is misleading, and in doing so will have to supply an outside evaluation of its controversial tariff increases.
The ASA last week ruled that Telkom had to withdraw a television advertisement claiming that the average increase after it introduced new tariffs in January was 5.5%. The body ruled that the advert misrepresented the facts and had to be withdrawn.
Telkom has consistently claimed that its increases amount to 5.5% and are below inflation, but a number of businesses, consumers and industry bodies, including the Independent Communications Authority of SA (ICASA) say that number is far removed from reality. With some services increasing by more than 50%, the Cape Chamber of Commerce told the ASA the increases were closer to 30%.
Telkom submitted in-house documentation to show how the average increase was calculated, but the ASA said it would require substantiation from an external source.
The company is now expected to supply such an assessment on 26 February, when the appeal against the initial ruling is to be heard. The advert in question may not be aired in the interim.
"We will demonstrate that the overall adjustment on Telkom`s basket of services represents a 5.5% increase on revenue for Telkom, which is a below-inflation increase," said deputy sales and marketing VP Pinky Moholi in a statement released on Friday.
However, the rate assessment will not necessarily be in the public domain. The ASA says respondents have every right to ask that financial information be treated confidentially, and that such a request from Telkom would be honoured.
Telkom officials could not immediately be reached for comment.
The court case in which ICASA has challenged the legality of the increases is to resume on 5 March.
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