Telkom is increasing fixed-line telephony charges and hiking the cost of line rental, despite the continued fall in the number of lines in service as consumers switch to mobile alternatives. The telecommunications operator is, however, leaving broadband subscription fees unchanged.
Telkom claims the new tariffs, which take effect on 1 August if they are approved by its regulator, the Independent Communications Authority of South Africa, reflect an overall 1,3% increase. This, it says, is “far below the consumer price index, which is currently at 5,6%”.
The adjustments include a 3,1% decrease, to R1,30/minute in peak times, of calls to mobile phones. Calls to mobile phones are charged per-minute for the first minute and in increments of 30 seconds thereafter. The 5c/minute reduction in calls to mobiles is, however, far less than the decline in the past year in wholesale mobile termination rates, meaning the profit margin for Telkom from these calls has risen sharply. Termination rates — the fees mobile operators charge for calls carried onto their networks, fell from 56c/minute to 40c/minute on 1 March, a decline of more than 28%.
From 1 August, line rental charges will rise to R157/month for residential users, from R148,37/month previously. For business users, the figure goes up from R203,35 to R216. Line installation charges for all customers are being hiked by 6% to R584,79, from R551,69 before.
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Despite dwindling demand for fixed lines from South Africans — the number of fixed lines in service has fallen by about 200 000 in the past 12 months — Telkom has decided to hike the cost of fixed-line calls, with the post-paid rates for local calls jumping from 42c/minute to 46c/minute, an increase of 9,5%. The minimum charge for local calls rises from 57c to 63c – a jump of 10,5%.
However, the cost of long-distance calls is being chopped. National calls over distances greater than 50km will be cut from 57c/minute to 46c/minute during peak times. That’s a reduction of 19,3%. The rate in off-peak time falls by 6c to 23c/minute.
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International calls will, on average, remain unchanged, although tariffs to some destinations will increase, while to others prices will fall.
The prices for all of Telkom’s calling plans are also being hiked. — (c) 2013 NewsCentral Media
