/ 5 January 2005

Cosatu accuses Telkom of ‘milking’ locals

In expressing its dismay at Telkom’s new tariffs for 2005, the Congress of South African Trade Unions (Cosatu) on Wednesday accused the fixed-line monopoly of “milking” poor South Africans to support tourists.

With effect from January 1, Telkom increased the cost of local calls and calls to cellphones while reducing international destination-bound rates by an average of 28%.

While outgoing calls to cellular services have risen to R1,89 per minute, calls to Australia, Canada, France, Greece, Ireland, the United Kingdom and the United States now cost R1,70 per minute.

It costs R1,66 per minute to call Luxembourg, Liechtenstein, the San Marino Republic, Sweden and Switzerland. Telkom charges the same rate for calls to neighbouring states such as Botswana, Lesotho and Namibia.

Cosatu spokesperson Advocate Paul Notyawa argued it is obvious that Telkom based its tariff adjustments on tourism and big business trends.

“The message is clear; they are saying to tourists, ‘Come to South Africa, it will be cheaper to call home.’ They are continually extorting money from our poor masses to subsidise rich people and others from abroad,” he said.

“It’s quite embarrassing. It’s a continued immoral stand that is prepared to sacrifice poor people for the benefit of people with money.”

According to Statistics South Africa, 5,9-million employed people earn up to R800 per month. The South African Reserve Bank said the official unemployment rate is at 28,8% in a country that is home to 44-million inhabitants.

Notyawa said Cosatu will, in the near future, issue a statement on points such as the “double exploitation” wrought by Telkom’s new rates.

It will also reiterate its call — to the communications ministry, phone monopoly and other stakeholders — for a need to explore an amicable settlement that will ensure “our masses as well” benefit from tariff adjustments.

The union federation, which will mark its 20th anniversary in March, is one of the Proudly South African campaign’s founding members along with Telkom and a host of other organisations. — I-Net Bridge