For the urgent Attention of the Press Ombudsman
I refer you to the attached article from Die Burger (June 3 Financial section) which refers to Telkom prices for international data lines as 3x more expensive than prices in the second most expensive country, and 400% higher than the average world price . In answer to this, a Telkom spokesperson said that certain services are used to subsidise services in poorer areas.
Telkom was given clear rollout targets in its license when it was issued in 1997. In the five years of the exclusivity period, Telkom was obliged to:
* Install 2,69-million new lines;
* of which 1,68-million were to be in disadvantaged areas.
2,85-million lines were installed as part of Telkom’s rollout obligations, but currently only 600 000 of them are still in use. More than 2-million new lines in disadvantaged areas have been disconnected. Please see this link for verification of these facts
http://www.solidariteit.co.za/home/mailPreview.asp?ID=184
Furthermore, there is absolutely no quantifiable proof that Telkom subsidise anyone in disadvantaged areas, in fact in the US Securities and Exchange Commission filings they refer:
"We intend to continue to reduce our fixed-line headcount over the next few years. Our ability to implement optimal employee reductions is limited by South African labor laws. In addition, legal requirements make such reductions costly. We also face pressure from labor unions in South Africa who oppose employee reductions and may encounter resistance from the Government of the Republic of South Africa if the reductions conflict with the Government's social objectives at the time. If we are unable to reduce the number of our fixed-line employees and employee expenses or if significant labor unrest results from implementation of our fixed-line employee reduction program, our ability to compete may be harmed and our net profit could decline." which is evidentiary of their unofficial policy to reduce services in unappealing areas, and
"In line with Telkom's strategy of delivering excellent service to customers at competitive prices, Telkom limited its overall tariff increases for its regulated basket to 2.2% in 2004, below Government's target inflation range of between 3% and 6%. In 2005 Telkom will increase its overall tariffs by 0.2% with international calls on average decreasing by 28% and long-distance calls by 10%. There is still a need to rebalance certain tariffs to eliminate any cross subsidisation and allow for effective competition in all areas going forward. Local peak calls will increase by 5.5% and monthly subscriptions will increase by 6.3%. Telkom is focused on offering value-for-money and we are increasingly launching bundled minute packages and calling plans such as XtraTime and Surf Anytime." which is further proof of their milking of their monopolistic hold on the public.
It is a fact that less than 10% of the population of this country can AFFORD BASIC TELEPHONY. Please see the graphs at
www.hellkom.co.za for evidence of this. Furthermore, the web consumer forum
www.MyADSL.co.za point out that South Africa is the only country on the planet where the trend is to reduce fixed line services. In fact, MyADSL point out that the vast majority of the population of South Africa cannot afford a fixed line service. South Africa now has less telephone lines in operation than it did five years ago. MyADSL also state that certain fixed line call charges are more expensive than any other country in the world and three times more expensive than the country that came in second place. No wonder our incumbent’s published after tax profit for 2004 was R4, 592 billion (which equates to R12, 58 million in profit per day or R145 a SECOND in net profit).
I DEMAND that Telkom verify, quantifiably, the subsidisation they refer to in this press article.
Your sincerely
). But here is the interesting part, in answer to this, a Telscum drone said that certain services are used to subsidise services in poorer areas! What utter CR@P! If that was truly the reason, local calls would have been dirt cheap, and profits would have been much much lower! Do they realy think that we are that stupid? These higher prices are only used to line the pockets of the "new elite", not one cent goes to the so called "people"! What a joke........
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