Following a flurry of comments around Telkom’s proposed tariffs for 2005, Telkom spokesperson Ravin Maharaj on Thursday said public hearings into the proposed Telkom price controls will be held in December.
Although the group has announced that it has filed for an average tariff increase of 0,2%, the South African Chamber of Business (Sacob) says the approval of these proposals will hurt small business, as costs for local calls are set to rise by 5,5%.
The telephone monopoly this week filed its proposed tariffs for 2005 with the Independent Communications Authority of South Africa.
While Sacob economist Bill Lacey acknowledged that the 5,5% rise is within the South African Reserve Bank inflation target, he noted that the group has generated “a handsome profit”, and for that reason Telkom could have been more generous to consumers.
“There is still a need to rebalance certain tariffs to eliminate any cross-subsidisation and allow for effective competition in all areas going forward,” Maharaj said. — I-Net Bridge