Telkom hikes prices
Telkom has filed what it calls a ‘minimal tariff adjustment’ with ICASA.
The tariff filing – when approved by ICASA – sets out the key tariff changes that will come into effect on 1 August 2008.
The formula used by ICASA to determine the extent of allowable price adjustments is “Consumer Price Index (CPI) minus 3.5% plus carry-over”.
“At the relevant date (April 2008) the CPI was 11.1%. The regulatory formula would have allowed Telkom to file an overall increase of 17.2% in the basket of products and services,” Telkom said in a SENS statement.
“Telkom has instead decided to submit an overall increase of only 2.4%. Compared to the CPI used in the tariff filing, customers will experience a decrease in real terms of 8.7%.”
“Pricing is a key element of the value proposition of Telkom” says Godfrey Ntoele, Telkom’s Group Executive National Sales and Marketing Operations.
Higher prices
Telkom has increased the prices for various services, including analogue line and ADSL installations, analogue line rental, ISDN line rental, PrepaidFone installations and local call rates.
The minimum charge for post-paid local calls (0-50 kilometres) will increase by 9.4% and the per-second tariff for local calls during standard time will increase by 3.1% and during Callmore time by 9.2%.
All residential and business installation charges, as well as analogue and ISDN Basic Rate line rental will increase by 11%.
Monthly residential line rental charges will be R124.20 from August, up from the previous R 111.90. Business users’ monthly rental rates will increase from the current R148.68 to R 165.00.
Residential ISDN customers will pay R219.30 per month from August, up from R197.57, while business customers will pay R304.60, an increase of around R 30.00 per month from the previous R274.40.
Telkom has further enhanced its Closer packages with more free minutes, but at the same time increased the prices of all Closer packages. This includes an increase of R 15.00 on its Closer 1 package, R 16.00 on its Closer 2 service and a R 33.00 price hike on its Closer 3, 4 and 5 offerings.
No change in ADSL prices
Many broadband users expected an ADSL price reduction, but no price adjustments will be made in the ADSL space.
“Our broadband customers will also be glad to hear that our submission makes provision for the monthly subscription charges for ADSL, Do Broadband and Telkom Internet to remain unchanged,” says Ntoele.
There is however a decrease in data products. Ntoele says Telkom’s stated objective of growing the data business has resulted in the company filing an average decrease of 7% on data products in the basket.
“As in the past, we have complied with regulatory stipulations and we are optimistic that ICASA will approve the proposed tariff changes” says Ntoele.
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