Telkom bumps up ADSL caps
Telkom today filed its latest tariff adjustments with ICASA, which sees an overall price increase of 1.7%.
The company explained that this price increase “is well below the overall increase permitted by the regulator’s Price Control Formula.”
“The Price Control Formula implemented by ICASA uses the formula of ‘Consumer Price Index (CPI) minus 3.5% plus carry-over’. This formula – using the April 2009 CPI of 8.4% as is required by regulation – would have allowed Telkom to file an overall increase of either 19.7% (including carryover of 14.8%) or 4.9% (excluding carryover),” Telkom said.
“However, Telkom’s price-filing with ICASA seeks an overall increase in its basket of products and services of only 1.7%. Pending ICASA approval of the price filing, Telkom’s new tariffs will become effective on 1 August 2009.”
While Telkom may have opted for a lower increase than legally allowed, many consumers may feel that the changing telecoms landscape would have meant price decreases rather than increases.
There were widespread expectations that Telkom would reduce the price of its ADSL service to become more competitive in the market, but the company announced that the monthly subscription charges for DSL, Do Broadband and TelkomInternet remain unchanged.
There is however some good news for Telkom ADSL subscribers.TelkomInternet all access 2GB and 3GB standard offering bandwidth customers will see their monthly usage limits increase to 3GB and 5GB respectively.
“For the past few years we have been aligning our prices to be more competitive and in line with international standards, related costs as well as business and economic considerations. Having complied with regulatory prescriptions, Telkom is confident that our proposed price changes will be approved by ICASA,” said Telkom’s Group Executive for National Sales and Marketing Operations, Godfrey Ntoele.
Telkom ADSL pricing & caps discussion
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