Telkom vs Neotel: 2012 call costs comparison

Telkom announced on Thursday, 28 June 2012, that their customers will see an overall tariff increase of 1.2% on basic voice and data services.

Fixed to mobile call tariffs will decrease by 3.6%, while there will be a 5% increase in pre-paid local calls, and 6% line rental and installation increases.

Residential customers will pay R148.37 for their monthly phone line rental while business subscribers can expect a fee of R203.35 per month.

No change to the cost of calls to fixed lines was announced with the adjustments that are set to kick in on 1 August 2012.

Though the reductions in calls to mobile numbers will mean lower charges on Telkom subscribers’ monthly bills, Neotel still offers significantly cheaper prices than the incumbent.

In fact, it is cheaper to call a Telkom phone from Neotel during peak hours than it is to make a Telkom on-net call.

The table below compares Telkom and Neotel’s voice tariffs for basic call termination destinations:

Call costs in South Africa: August 2012
Operator >> Telkom Neotel
Call Destination Peak Off-peak Peak Off-peak
Telkom local R0.42 R0.207 R0.34 R0.15
Telkom regional N/A N/A R0.46 R0.25
Telkom national R0.57 R0.285 R0.51 R0.29
Neotel local R0.65 R0.54 R0.17 Free
Neotel regional R0.65 R0.54 R0.23 Free
Neotel national R0.65 R0.54 R0.29 Free
Mobile R1.35 R1.08 R1.05 R0.93

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Telkom vs Neotel: 2012 call costs comparison