/ 7 December 2004

Icasa approves new Telkom tariffs

The Independent Communications Authority of South Africa (Icasa) has approved Telkom’s tariff and fee structures for next year, the authority said on Tuesday.

Icasa said in a statement that Telkom is required to reduce its average price for services by 1,5%, for its prices to fall below the inflation rate.

”The approved price changes mean that Telkom will increase its overall basket of services by 0,15% as of January 1 2005,” the statement reads.

Rental and installation costs have been increased by 6,3%, the maximum amount allowed, while the rate for domestic long-distance calls has been decreased by 10% and international calls by 28%.

Icasa said it has recently undertaken a price-cap review that will revise the current rate regime regulations.

”We anticipate that this new price-cap regulation will be made effective by the end of January 2005.

”Once this is approved, it is proposed that Telkom be given 30 days to refile its tariff and fee filing request with Icasa.”

The authority said it is vital that South Africa have an efficient fixed-line operator that provides ”excellent value for money to users as well as high-quality service”.

”Icasa will therefore be assessing the extent to which Telkom should be expected to further improve its performance over the next few years.” — Sapa