South Africans will know later this year whether Telkom is ripping them off, or whether its fees are in fact reasonable, when these come under review by the independent communications regulator, Icasa.
Telkom, which continues to have a monopoly on fixed lines, posted a record net profit increase of 177 percent to R4.5-billion for the past financial year.
On Tuesday Democratic Alliance MP Dene Smuts told the National Assembly's communications committee that given Telkom's dazzling results, its high fees could no longer be tolerated. She urged Icasa, to force Telkom to file lower phone tariffs, when it comes for review later in the year.
'Telkom has all of us by the throat'
"In our view they cannot be allowed to get away any longer with phone tariffs at the rate they've been getting every year."
She was supported by the Inkatha Freedom Party's Suzanne Vos, who told the Icasa board members: "Your role is to protect consumers, where Telkom has all of us by the throat.
"We have a second national operator coming on line - clearly it's going to cherry-pick.
"We heard from the (communications) department that they don't expect that this duopoly will bring down prices. It's a kind of con job going on with the public."
Vos wanted to know whether there was anything in the agreement that would militate against a decrease in telephone costs.
'It might possibly give us, like the Rosetta Stone, some answers'
However, Icasa chairperson Mandla Langa said the regulator was as much in the dark as everyone else.
"We haven't seen that secret/confidential agreement and we are also waiting with bated breath to have sight of that, because it might possibly give us, like the Rosetta Stone, some answers."
On lower telephone costs, Langa said the government was anxious about the high cost of telephony and its impact on investment. "There has been a real, sincere need to look at this and to find a means, because it is seen as a disincentive to investment, it is seen as a barrier to entry, and is therefore economically unviable and has to be reviewed."
Once costs were lowered, it would boost competition, and would benefit consumers, Langa said.
Outgoing Icasa councillor Mbulelo Ncetezo told MPs that the new regulations on costs of services, known as the Chart of Accounts and Cost Allocation Manual (COA/CAM), would go a long way to solve the problem.
"We will be able to look at the cost structure of Telkom and whether they cross-subsidise their services."
Icasa was expecting Telkom's reports at the end of June or July, Ncetezo said.
"Those reports will be analysed properly, in such a way that we can deal with lots of problems."
This article was originally published on page 6 of The Cape Argus on June 09, 2004
Telkom, which continues to have a monopoly on fixed lines, posted a record net profit increase of 177 percent to R4.5-billion for the past financial year.
On Tuesday Democratic Alliance MP Dene Smuts told the National Assembly's communications committee that given Telkom's dazzling results, its high fees could no longer be tolerated. She urged Icasa, to force Telkom to file lower phone tariffs, when it comes for review later in the year.
'Telkom has all of us by the throat'
"In our view they cannot be allowed to get away any longer with phone tariffs at the rate they've been getting every year."
She was supported by the Inkatha Freedom Party's Suzanne Vos, who told the Icasa board members: "Your role is to protect consumers, where Telkom has all of us by the throat.
"We have a second national operator coming on line - clearly it's going to cherry-pick.
"We heard from the (communications) department that they don't expect that this duopoly will bring down prices. It's a kind of con job going on with the public."
Vos wanted to know whether there was anything in the agreement that would militate against a decrease in telephone costs.
'It might possibly give us, like the Rosetta Stone, some answers'
However, Icasa chairperson Mandla Langa said the regulator was as much in the dark as everyone else.
"We haven't seen that secret/confidential agreement and we are also waiting with bated breath to have sight of that, because it might possibly give us, like the Rosetta Stone, some answers."
On lower telephone costs, Langa said the government was anxious about the high cost of telephony and its impact on investment. "There has been a real, sincere need to look at this and to find a means, because it is seen as a disincentive to investment, it is seen as a barrier to entry, and is therefore economically unviable and has to be reviewed."
Once costs were lowered, it would boost competition, and would benefit consumers, Langa said.
Outgoing Icasa councillor Mbulelo Ncetezo told MPs that the new regulations on costs of services, known as the Chart of Accounts and Cost Allocation Manual (COA/CAM), would go a long way to solve the problem.
"We will be able to look at the cost structure of Telkom and whether they cross-subsidise their services."
Icasa was expecting Telkom's reports at the end of June or July, Ncetezo said.
"Those reports will be analysed properly, in such a way that we can deal with lots of problems."
This article was originally published on page 6 of The Cape Argus on June 09, 2004