The Department of Communications recently held a colloquium to look at ways to bring down telecoms costs. There, deputy minister Roy Padayachie said it would do what was necessary, whether this be by way of regulations, ministerial determinations and even legislative changes.
On the revenue side, Ambekar expects Telkom’s voice revenue to decline over the long-term, but data revenues to continue growing. Telkom has threatened previously to curtail the rollout of its high-speed broadband service if regulator Icasa intervenes on pricing.
Asked if this were not a threat, Ambekar said: “Regulatory risk is always high in this industry.” But, she says Telkom is looking to increase the take-up of ADSL and is likely to further reduce prices to spur that on anyway. She expects prices to come down over the next two to three-years.
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