JOHANNESBURG (Reuters) - South African fixed-line phone firm Telkom may cut some tariffs after the government complained that high prices were impeding growth and deterring foreign investment, the company said on Friday.
Telkom spokesman Xolisa Vapi said communication regulator ICASA had decided to cap Telkom's price increases at 3.5 percentage points below inflation, which would force the company to cut some prices.
"We will be announcing new pricing soon," Vapi said. "Some of our prices may come down, some may not."
The government approved the new pricing cap -- which is tougher than a previous price rise limit of 1.5 percentage points below inflation -- last week.
South Africa's targeted CPIX inflation rate rose by an annual 3.9 percent in May.
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Vapi said the new pricing policy would probably be introduced in Septemeber.
He declined to say which calls the company was thinking of making cheaper, but said Telkom was working with the government to make sure its prices were not hurting business.
"We are working to manage down prices and make sure we do not have a negative impact on the cost of doing business in South Africa," he said.
