Local and long distance fixed-line phone call charges for 2003 are expected to increase by 12,5% in line with inflation, Telkom said on Tuesday.
The proposed increases — which still have to be approved by the Independent Communications Authority of South Africa (Icasa) — were announced at a media briefing at the Sandton Hilton hotel.
Telkom representative Pinky Moholi said the overall increase in its regulated basket of services was expected to be 9,5%.
In terms of the tariff regulations set by Icasa, average increases were limited to the Consumer Price Index (CPI), minus 1,5%.
With the CPI set at 12,5% on September 30 this year,
Telkom has proposed tariff increases on its total basket of services at three percent less than the CPI.
”Our adjustments are in line with the regulations, and are also in keeping with the spirit of the agreement that we reached with Icasa earlier this year in which we undertook to leave R320-million
on the table in the next two years,” Moholi said.
A dispute arose between Icasa and Telkom earlier this year when Icasa objected to Telkom’s tariff increases for 2002. In an out-of-court settlement reached between the two, Telkom agreed to leave R320-million behind for the consumer over the next two years.
This amount was incorporated into Telkom’s tariff increases for 2003.
”Had we not agreed to leave the R320-million behind, Telkom’s increase would have been the maximum 11%allowed for next year as stipulated by Icasa’s regulations,” Moholi said.
Although Telkom was allowed to increase any specific service by the CPI plus five percent, Moholi said Telkom had taken the decision not to increase any part of the basket by more than the CPI.
”We are aware that increases in any area are painful to the consumer. As a result, Telkom will be introducing various options to cushion the impact of next year’s adjustment,” Moholi said.
For example, Telkom would introduce its BestFriends package in December. This would allow users to choose five fixed-line numbers and would receive a 10%discount on calls made to those numbers at any time.
Telkom would provide a free basic voicemail service to customers from January 1, 2003.
”Following a consistent demand by customers for discounts on certain public holidays, Telkom is offering a 25% discount on calls between Telkom phones on Christmas day between midnight on
December 24 and midnight on Christmas Day.
”Our billing system is now flexible enough to accommodate once-off discounts like this, and we are also planning innovative new packages which include free talk time during CallMore time for the New Year,” Moholi said.
Thus, in monetary terms, local calls in standard and CallMore time would increase by 6,2 cents per minute or 12,5 percent. A local call will therefore increase from 49 cents to 55,2 cents for the first 89 seconds in standard time, and the first 237 seconds in CallMore time. Thereafter calls in standard time will be charged at 37,1 cents per minute — an increase of 4,1 cents per minute — and 14 cents per minute in CallMore time, an increase of 1,6 cents per minute.
Long distance calls would increase by 11 cents to 99 cents for 60 seconds in standard time, and 120 seconds in CallMore time.
Thereafter, calls would be charged at 99 cents per minute in standard time, and 49,5 cents in CallMore time — an increase of 5,5 cents.
Calls to cellphones would increase by 10 cents to R1.88 cents for 60 seconds in standard time, and R1,11 in CallMore time.
Thereafter, calls would be charged at 94 cents per 30 seconds in standard time, and 56 cents in CallMore time — an increase of three cents.
International calls would increase by five percent on average while data services would increase by 6,3% on average.
Monthly rental for residents will rise by R8,48 to R76,20 and by R11,6 for businesses to R101,23.
These are the effective charges, including Value Added Tax. Despite the proposed substantial rise in tariffs, Moholi said Telkom’s rates were competitively priced on the international market featuring around the average taken of developing and
developed countries.
The proposed increases were sent to Icasa on Tuesday. Icasa’s reply is expected in early December. – Sapa