Sudden price increases in South African telecoms

Arthur

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#2
Before anyone mouths off, please remember the real reason is our ever-diminishing Rand.
 

Swa

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#6
Telkom always increases line rental. Their mobile arm haven't increased charges and instead have decreased some of their deals. They seem to even be playing on the fact the others increased prices in their latest adverts. I say the weak rand is just a smoke screen.
 

Arthur

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#7
Telkom always increases line rental. Their mobile arm haven't increased charges and instead have decreased some of their deals. They seem to even be playing on the fact the others increased prices in their latest adverts. I say the weak rand is just a smoke screen.
I doubt it. I think they're taking the opportunity to realign pricing across the board.

There's no doubt it costs 20% more Rand for the same dollars, and telecoms is dollar-intensive. What we see itemised as line rental also includes a portion for exchange/MSAM/DSLAM equipment, which costs 20% more Rand than six months ago. You absolutely have to increase the Rand price just to make the same. Profit is essential to fund future investment.

For a broadline telecoms o operator like Telkom, pricing is a massively complex business. There are probably several hundreds of foreign contracts in a variety of currencies with suppliers, sharing/interconnection partners and several hundred parameters across fifty revenue streams ... so repricng is a major exercise that involves several executives and hundreds of other people over several months. it makes sense to take the oppy and realign across the board.

People have very little grasp of what it takes to run a large and complex organisation.
 
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Mike43110

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Oct 27, 2008
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#8
Add onto that the cost of power... Transmission, routing, servers etc. all have higher running costs.
 

kianm

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Jan 13, 2014
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#9
Or maybe because they can. Aren't they already making sooooo much from the people , and are just soo used to those high profits. As for CellC well...
 

lsheed_cn

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Sep 14, 2008
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#10
I'm inclined to think that all 3 of the major vendors increasing prices within weeks of each other smacks of collusion.
Shame we don't actually have anyone that cares about that who isn't in their pockets.
 
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