The Independent Communications Authority of South Africa (Icasa) last week approved Telkom’s new tariff structure in spite of the rise in installation and rental fees, it was announced on Monday.
In terms of the new prices, which were implemented on September 1, the fixed-line monopoly hiked installation fees by 8,4% to R316,10 for private users, while monthly analogue line rental for business and residential consumers rose by 6% to R92,28 and R122,60 respectively.
Telkom corporate communications executive Lulu Letlape said last month’s discussions between the monopoly and Icasa required no amendment to the phone group’s filing under the new pricing regime of 3,5% below CPI.
After rising by 5,5% in January, the tariffs for local calls (within a 50km radius) have — with effect from last Thursday — been reduced by 5% to 38 cents per minute during standard time. The minimum charge, however, remains at 59 cents for this item.
Costs for cellphone-bound calls remain unchanged at R1,89 per minute during peak periods.
The government is of the view that fixed-line penetration, or a tele-density of about 10%, continues to be poor by international standards.
Part of the reason for this low residential penetration lies in customers having moved to more convenient mobile services. Telkom’s high prices for local residential calls have also been part of the negative trend in fixed-line penetration.
Last week, the MTN Group and Telkom’s 50%-held Vodacom announced that they had slashed their outgoing calls tariffs by up to 50%.
Despite the recent price reductions by mobile groups, the regulator is poised to engage the public and other interested parties on high cellular pricing in response to the Communications Users’ Association of South Africa’s formal complaint earlier this year.
The government, which hopes the second national operator (SNO) will be operational before year-end, is planning to hold a second colloquium on telecommunications pricing next month.
Three years after the expiry of Telkom’s monopoly, the SNO is yet to get off the ground. — I-Net Bridge