Telkom’s new prices: a closer look
Telkom announced significant reductions on its ADSL access prices at its results presentation this year. With the high profile of broadband, these ADSL price cuts stole the show and received extensive media coverage.
Telkom’s new pricing however encompasses far more than just broadband, and while there are price cuts in store for many Telkom subscribers, others will have to fork out more for their existing services.
Unfortunately the news about widespread tariff increases did not make headlines, and was also not present in Telkom’s press release regarding their new pricing structure.
Price reductions
The main beneficiaries of the proposed price changes will be DSL users. They will enjoy an average reduction of 18.2% with the entry level service (up to 384 Kbps Access) dropping by 38%.
Telkom’s new broadband offering – the entry level Do Broadband – which combines the DSL 384 Kbps access and the Internet Service Provider (ISP) portions – has been cut and will cost R199 per month, including VAT (a 29% reduction).
Business customers using Telkom’s data products will also see savings, with an average decrease of 12%. IPLC (International Private Leased Circuits) has been reduced by 30% (cable) and 12% (satellite), Diginet (overall) reduced by 11%, Megalines reduced by 10%, and ATM Express reduced by 10%.
Further good news is the 10% decrease in long distance call charges – 65c per minute, including VAT, during Standard Time and 32.5c per minute, including VAT, during Callmore Time – and a 9% average reduction in International calls.
Those with family or business ties in the UK and USA, will especially benefit, with calls costing 95c and 85c, including VAT, during Global Peak Times and Global Off-peak Times respectively. Calls to neighbouring countries see an average decrease of 15% during peak times and 19% during Global off-peak times.
The minimum charge for local calls remains unchanged at 59.4 cents , including VAT, as does the per minute rate of 38 cents, including VAT, with a small increase in the Callmore rate (from 16c to 17c per minute, including VAT).
Price increases
Telkom’s new pricing model is however not all good news. Many Telkom customers, including ISDN subscribers, will have to fork out more for their services.
Standard analogue line rental, a fee that most Telkom customers have to pay, has increased from R 99.92 to R 111.90 per month. Business customers will have to fork out R 148.68 per month, up from the current R 132.75.
Line installation charges will also go up from R 342.30 to R 383.37, a R 41.07 increase.
While the local call charges for standard time has remained unchanged, the callmore-per-minute rate has been increased by 6.3%, from 16c to 17c. The ‘talk time for minimum charge’ during callmore time has also been reduced from 223 to 209 seconds.
While many data customers will be happy with Telkom’s reductions, the price for voice graded leased lines, Datel and Telex services will increase in August.
Bad news for prospective ADSL customers is that the once-off DSL installation charge will increase from R 437.50 to R 490.00 in August.
ISDN customers are also in for an unpleasant surprise when their August bill arrives. The cost for an ISDN installation will rise from R 176.40 to R 197.57 for residential subscribers and from R 245.00 to R 274.40 for business users.
The monthly charges for ISDN will also increase. Residential ISDN 2 subscribers will have to pay R 186.50, up from R 166.52 while ISDN 2a users will pay R 197.57 instead of the current R 176.40.
Similar increases are in store for businesses that use ISDN, with as ISDN2 subscriber’s monthly cost increasing from R 230.50 to R 258.15 and ISDN 2a customers from R 245.00 to R 274.40. ISDN30 customers’ monthly bills will also increase by around 12%.
Mixed bag
It is interesting to note that in Telkom’s new tariff summary there were more services that will increase in price in August than services which will decrease.
Telkom’s new rates will therefore most likely be met with mixed feelings when they kick in on the first of August.
While many consumers, especially ADSL subscribers, may welcome the reductions many others will have to pay more than what they have become accustomed to.
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