Why Telkom hiked an overseas call rate by 2,600%

Telkom subscribers have been hit by massive tariff increases on over 100 international networks, reported the Sunday Times.

Where subscribers were previously charged different rates for calls to overseas landlines or mobile numbers, the number of options has increased dramatically.

International numbers can now be classified into metro and non-metro areas, as well as standard calls or special services.

One subscriber told the Sunday Times that a call to Australia that used to cost R0.72 per minute had increased to R20.11 per minute – a 2,693% increase.

According to the report, Telkom said it had been undercharging for international calls to certain destinations and had to make changes to recover its costs.

Telkom said in the past it charged subscribers a single rate despite operators charging it different wholesale rates to connect calls to their networks.

This worked well in the past, but with international call volumes in significant decline, it was no longer possible for Telkom to absorb the risk.

The full article is available in the Sunday Times of 14 August 2016.

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Why Telkom hiked an overseas call rate by 2,600%