/ 24 August 2005

Lower Telkom tariffs delayed

Fixed-line consumers will not enjoy lower telecommunication costs on September 1, as Telkom is yet to reply to the Independent Communications Authority of South Africa’s (Icasa) correspondence in which the regulator asked the company to rework some of its proposals, it emerged on Wednesday.

The listed group, which on July 22 filed in terms of the new tariff structure of 3,5% below CPI, proposed an overall reduction of 3%. In filing to Icasa, the company proposed a rise for certain services — including line installation and rental, a no change for fixed-to-mobile charges and a decrease for others.

Telkom corporate communications executive Lulu Letlape said the company is in the process of formulating a response to Icasa’s correspondence, adding that this will be finalised soon.

Icasa said in terms of the new structure, South African consumers should see a fall in telecom costs that will, over time, track the cost of living.

In another development, the Department of Communications will in October host a follow-up colloquium on telecommunications pricing.

Minister of Communications Ivy Matsepe-Casaburri is expected to release a preliminary report on the pricing structure and what the government describes as high telecommunications costs, which in turn slows down or deters foreign direct investment.

The preliminary report follows the July colloquium in which a working committee was formed to further probe the pricing issue while making suggestions that would help effect sustainable lower costs. — I-Net Bridge