Telecommunications group Telkom has filed for an average tariff increase of 0,2% for 2005, the group disclosed on Monday.
The group said it has filed its 2005 tariff adjustments with the Independent Communications Authority of South Africa (Icasa), in accordance with the Telecommunications Act, 103 of 1996, and regulations made under the Act.
The current regulations impose a price-cap formula on a basket of specified services that Telkom previously had the exclusive right to provide. These include:
- installations;
- prepaid and postpaid line rental;
- local, long-distance and international calls;
- fixed-to-cell calls;
- public payphone calls;
- ISDN services;
- the Diginet product; and
- the Megaline product.
Currently, the overall tariffs for all services in the basket may not be increased by more than 1,5% below inflation in South Africa, based on the consumer price index (CPI) and measured using revenue for the services in the basket at constant volumes for the prior year.
In addition, the price of any individual product or service included in the basket may not be increased by more than 5% above inflation in South Africa in any year.
Inflation is based on the year-on-year movement in CPI as measured at September 30. CPI was 1,3% at September 30 this year.
The current regulation makes provision for the carry-over of allowable rate benefits that were not used in the prior year to be claimable in the following year.
In the 2004 annual tariff increases, Telkom did not utilise the full allowable rate benefits. The amount carried over to the 2005 tariff increases will have a 0,5% impact on the allowable increase in tariffs, Telkom said.
“Based on CPI and the carry-over allowance from the prior year, Telkom’s tariff adjustments for the regulated basket of services represent an increase in revenue of 0,2%, effective from January 1 2005,” it stated.
If Icasa accepts the recommendations, the cost for a fixed-line local call during both peak and off-peak periods will increase from 56 cents to 59 cents for the first unit, and to 40 cents thereafter.
The rate for long-distance during off-peak periods will increase from 99 cents to 89 cents for the first unit and to R1,89 for each subsequent minute.
Fixed-to-cell calls will increase from R1,84 to R1,89 per minute. — I-Net Bridge
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