The statutory Independent Communications Authority of South Africa (Icasa) has called for comment from interested parties on its discussion document issued this month regarding fixed-line telephone price-cap regulations.
Icasa spokesperson Vimla Maistry on Friday said the closing date for comments is December 7, after which the regulator will hold public hearings on December 13 and 14.
Although Telkom filed its tariff adjustments for 2005 with the regulator this month, the telecommunications group has highlighted that the filing is not related to the regulator’s discussion document.
In proposing an average tariff hike of 0,2% this week, Telkom said such rates demonstrate that the fixed-line monopoly’s tariffs are “highly competitive and among the most affordable in the world”.
Local call costs will from January 1 rise by 5,5% (to 59,4 cents — minimum charge). Standard-time calls to some popular international destinations such as Nigeria and the United States will be slashed by about 50%, with calls to Pakistan falling by 65,3% to R2,70 from R7,79 (minimum charge).
Icasa has also proposed that the revised price-control regulations incorporate a provision requiring Telkom to file a new set of price adjustments within 30 days of the regulations coming into effect.
“The price adjustments at that time will be required to reflect the average price reduction required at the new proposed rate of 4% below the rate of inflation for the remainder of the price control year,” Icasa said in a statement.
“Thereafter, the normal timing of the application of the price-control target will be resumed. In this way, the delay that has been experienced in moving to the revised price-control levels, while Telkom has implemented the requirements of its fixed network COA/CAM, will be minimised.” — I-Net Bridge