Telkom implements tariff increases after 2-year price freeze

For the first time in over two years, Telkom will implement some tariff increases across its voice, broadband, and mobile services, effective 1 August 2022.

These changes are due to the rising costs in the South African telecommunications space ensuring that Telkom continues to offer quality service delivery to its customers.

The increases are minor relative to those of its competitors, and Telkom will continue giving its customers the best value in the industry.

The increases for ADSL, Fibre, and Fixed Voice products will therefore only be between 3% and 5%.

• Click here to learn more about Telkom’s products and services

For context, the Household Affordability Index by the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) found in March 2022 that year-on-year basket prices in South Africa had increased by 10.2%.

This is double most of Telkom’s new price increases, and whilst the basket price increase took place over the prior year, the Telkom price increases are the first of their kind in over two years.

We compare the price increases for Telkom Fibre, DSL, and mobile packages to South Africa’s yearly basket increase, below. (Click on the graphic to expand it)

These increases will also be coupled with added value that the company will provide to its customers, including an improved service experience and the removal of throttling policies for its Fibre Unlimited portfolio – offering a pure uncapped service.

Telkom will also use this opportunity to transition its ADSL customers on 1Mbps and 2Mbps packages to its 5Mbps product.

“Telkom has remained committed to its customers with a price freeze over the past two years in efforts to assist South Africans throughout the difficult times of COVID-19,” said Telkom Consumer Business CEO Lunga Siyo.

“The imminent increase of tariffs across our fixed voice, ADSL, Fibre (Fibre To The Home), and mobile offerings will enable us to continue to service our customers effectively, including small and medium businesses, whilst ensuring that we remain competitive.”

Tariff changes

Telkom’s tariff changes are as follows:

• Small Medium and Business (SMB) customers will see small increases on most legacy product subscription fees, Business DSL, line rentals, Analogue/ISDN installations, and bundle offerings.
• Mobile products will see monthly subscription increases on certain tariffs, but Smart Broadband Data and new FreeMe customers will not be affected. There will be an increase on old FreeMe plans.
• There will be a small increase to out–of–bundle rates for mobile voice and data services – out-of-bundle voice rates increase by 5c per minute, and data rates increase by 2c per MB.
• Customers on fixed voice packages across copper and fibre – including Fixed Line Look Alike (FLLA) – will see small increases to installation and package prices, but there will be no increase to standard call rates. Biztalk and ISDN PRA packages will also experience small tariff increases.

Consumer customers will see price adjustments on DSL bundles, legacy product subscriptions, Fibre bundles, including line rentals and installation charges. Telkom has minimised the magnitude of these changes so that its customers still receive the superior value they have become used to.

“As South Africa trends positively down the road to recovery, and given Telkom’s commitment to its customers, we believe the increase is necessary to maintain our value-driven, high-quality product and service offerings to all our valued subscribers,” said Siyo.

Click here to learn more about Telkom’s products and services

View the following graphics to learn more about Telkom’s proposed tariff increases: