OWN CORRESPONDENT, Johannesburg | Friday 10.00am.
COST of local telephone calls will rise by a substantial 19,2% from next year, Telkom announced on Thursday. This increase follows rises of 25% and 28,4% in 1998 and 1997 respectively, making it the third successive year that Telkom will institute an above-inflation increase.
The rising cost of local calls will be offset, however, by an 8,1% drop in international calling rates in March — with a planned total reduction of 24% on international calls phased in through the year. National calls will see no change in the tariff structure.
Telkom CEO Sizwe Nxasana said that, taken overall, telephone rates will increase only 5,5%. “Apart from being 3,3% below the projected inflation rate of 8,3% for January, this is 1,8% lower than the level permissible in terms of Telkom’s licence,” he said.
Telkom said that the weighty increase in rates for local calls is necessary as the price does not currently cover the costs Telkom incurs. Local calls are currently subsidised by national and international rates, it said, which is only made possible by Telkom’s market monopoly. Organised business, however, expressed outrage on Thursday night at the rate hike, saying it will “strike a dull note to hard-pressed business and consumer interests”.
“The argument that this increase will be offset by no change to national and an 8% decrease in international calls provides scant comfort,” a business representative said.