briantw
Well-Known Member
From Finance24 / Sake
http://www.finance24.com/articles/default/display_article.asp?Nav=ns&ArticleID=1518-24_1695270
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Johannesburg - Telkom says its prices will drop systematically after it stops cross-subsidising between various services and the strong rand enables it to cut its prices.
The group says it is already preparing for its next tariff proposal to the Independent Communication Authority (Icasa) in August.
New price cuts, particularly for data tariffs, are expected to be announced then.
Icasa has the final say about Telkom's price increases although it can only act within its legislative powers and cannot reduce prices it deems too high.
Telkom's reaction comes after a study that exposed the telecommunications giant as the company with the highest telecommunication costs in the 15 countries studied.
Xolisa Vapi, spokesperson for Telkom, said the group was still studying the survey conducted by Genesis on behalf of the SA Foundation.
The study claimed that Telkom's prices, particularly those of local calls and international data links, are exceptionally high compared with a group of developed and developing countries.
"I do not know over which period Telkom's prices were analysed and what the basis for certain assumptions of the study was, but we have already dropped our prices significantly in a number of areas," Vapi said.
Telkom has been criticised in a number of studies for its high prices, particularly the cost of data and local calls.
The Genesis study, for example, showed that Telkom's tariff for ADSL broadband services is 148% higher than the average international tariff.
International data links cost nearly 400% more than the average and local calls are about 102% more expensive.
Vapi said Telkom subsidises certain services by making other services more expensive.
This includes local calls where tariffs are kept high so that Telkom, according to Vapi, can fund the cost of expanding its infrastructure.
Vapi said Telkom tries to handle each service separately before it can phase out cross-subsidising.
Regarding data tariffs, Vapi admitted that Telkom's prices were high but said the company has dropped its prices on certain services by 51% since 2003.
He said tariffs of its broadband ADSL service, which was the topic of several public hearings by Icasa after numerous complaints, were dropped by 12% in March.
About 10 000 new subscribers signed on for this service after the price reduction, which showed Telkom that the price cut was well received.
"We know there is a need to drop certain prices and will keep doing it, but not necessary as quickly as people want it to happen.
"We have to balance the cuts against the needs of the company," Vapi explained.
"
http://www.finance24.com/articles/default/display_article.asp?Nav=ns&ArticleID=1518-24_1695270
"
Johannesburg - Telkom says its prices will drop systematically after it stops cross-subsidising between various services and the strong rand enables it to cut its prices.
The group says it is already preparing for its next tariff proposal to the Independent Communication Authority (Icasa) in August.
New price cuts, particularly for data tariffs, are expected to be announced then.
Icasa has the final say about Telkom's price increases although it can only act within its legislative powers and cannot reduce prices it deems too high.
Telkom's reaction comes after a study that exposed the telecommunications giant as the company with the highest telecommunication costs in the 15 countries studied.
Xolisa Vapi, spokesperson for Telkom, said the group was still studying the survey conducted by Genesis on behalf of the SA Foundation.
The study claimed that Telkom's prices, particularly those of local calls and international data links, are exceptionally high compared with a group of developed and developing countries.
"I do not know over which period Telkom's prices were analysed and what the basis for certain assumptions of the study was, but we have already dropped our prices significantly in a number of areas," Vapi said.
Telkom has been criticised in a number of studies for its high prices, particularly the cost of data and local calls.
The Genesis study, for example, showed that Telkom's tariff for ADSL broadband services is 148% higher than the average international tariff.
International data links cost nearly 400% more than the average and local calls are about 102% more expensive.
Vapi said Telkom subsidises certain services by making other services more expensive.
This includes local calls where tariffs are kept high so that Telkom, according to Vapi, can fund the cost of expanding its infrastructure.
Vapi said Telkom tries to handle each service separately before it can phase out cross-subsidising.
Regarding data tariffs, Vapi admitted that Telkom's prices were high but said the company has dropped its prices on certain services by 51% since 2003.
He said tariffs of its broadband ADSL service, which was the topic of several public hearings by Icasa after numerous complaints, were dropped by 12% in March.
About 10 000 new subscribers signed on for this service after the price reduction, which showed Telkom that the price cut was well received.
"We know there is a need to drop certain prices and will keep doing it, but not necessary as quickly as people want it to happen.
"We have to balance the cuts against the needs of the company," Vapi explained.
"
