Telkom price cuts take effect

By Staff Writer for Telkom
Johannesburg, 01 Aug 2007

The Independent Communications Authority of SA (ICASA) has approved the price reductions announced by fixed-line giant Telkom in June. The tariff reductions are now in effect.

As of this morning, Telkom customers will benefit from an overall price reduction of 1.2%, says the company. DSL users will be the main beneficiaries of the price changes.

Says Telkom acting CEO Reuben September: "We reduce our prices in line with our overall drive to defend and grow our revenue. The price reductions will not only ensure more savings for our existing customers, but will also attract new entrants to the broadband experience.

"While the net impact of the proposed prices will vary among customers, the overall effect will be a reduction in the cost of telecommunications in SA."

Savings

The company says DSL customers will see an average price reduction of 18.2%. Entry-level offerings - up to 384Kbps access - will realise savings of up to 38%. Telkom's new offering, Do Broadband, which combines DSL 384Kbps access and Internet service provision, has been cut and will cost R199 a month.

Telkom's business customers of its data products will see an average cost decrease of 12%. International private leased circuits have been reduced by 30% for cable and 12% for satellite. Diginet has been cut by 11%, Megalines by 10% and ATM Express by 10%.

Other price reductions include:

* 10% decrease in long distance call charges - 65c per minute during standard time and 32.5c per minute during Callmore time.

* A 9% average reduction in international calls. Calls to the US and UK will now cost 95c and 85c, during global peak times and global off-peak times, respectively.

* Calls to neighbouring countries see an average decrease of 15% during global peak times and 19% during global off-peak times.

* Minimum charges for local calls remain unchanged at 59.4c, as does the per-minute rate of 38c.

Price hikes

However, not all of Telkom's rates have come down.

Its Callmore rate has increased from 16c to 17c per minute. In certain instances, business considerations have dictated price hikes, offset by the reduction in call charges, including a 12% increase in line rentals.

Accordingly, the monthly rental on analogue lines will increase to R111.90 for residential and R148.68 for business.