/ 31 July 2007

Telkom announces price reductions

South African fixed-line operator Telkom said on Tuesday that its customers are set to benefit from an overall price reduction of 1,2% as of August 1.

Telkom filed price changes on June 13, which have been subsequently approved by the Independent Communications Authority of South Africa.

The main beneficiaries of the proposed price changes will be DSL users, as they will have an average reduction of 18,2% and, in the entry level (up to 384 kilobits per second access), of 38%.

The fixed-line operator also said that the new broadband offering — entry level Do Broadband — which combines DSL 384Kbps access and ISP — has also been cut and will cost R199 a month including VAT (a 29% reduction).

Business customers of Telkom’s data products will see considerable savings, with an average decrease of 12%. International private leased circuits (IPLC) have been reduced by 30% (for cable) and 12% (for satellite), Diginet (overall) reduced by 11%, Megalines by 10% and ATM Express by 10%.

“We reduce our prices in line with our overall drive to defend and grow our revenues. The price reductions will not only ensure more savings for our existing customers but will also attract new entrants to the broadband experience.

“While the net impact of the proposed prices will vary among customers, the overall effect will be a reduction in the cost of telecommunications in South Africa,” said Reuben September, acting CEO of Telkom. — I-Net Bridge