Telkom has filed pricing changes with the Independent Communication Authority of South Africa (ICASA) which, if passed, will see customers paying less for services including ADSL.
"We are reducing our prices again in line with our overall drive to defend and grow our revenues" says Reuben September, Telkom's Acting CEO. "The proposed price reductions will not only ensure more savings for our existing customers but will also attract new entrants to the broadband experience."
The regulatory formula would have allowed Telkom to file a change in the basket of products of 8,7%. Therefore, Telkom could have increased its prices by 8,7% but instead is filing for an overall price decrease of 1,2%.
"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."
The main beneficiaries of the proposed price changes will be DSL users. They will enjoy an average reduction of 18,2% and, in the entry level (up to 384kbps access) of 38%.
The new broadband offering – the entry level Do Broadband – which combines DSL 384kbps access and the Internet service provider (ISP) – has also been cut and will cost R199.00 per month, including VAT, (a 29% reduction).
Business customers of Telkom's data products will see considerable savings, with an average decrease of 12%. IPLC (International Private Leased Circuits) has been reduced by 30% (cable) and 12% (satellite), Diginet (overall) reduced by 11%, Megalines reduced by 10%, and ATM Express reduced by 10%.
Further good news is the 10% decrease in long distance call charges – 65c per minute, including VAT, during Standard Time and 32,5c per minute, including VAT, during Callmore Time – and a 9% average reduction in international calls.
Those with family or business ties in the UK, US others will especially benefit, with calls costing 95c and 85c, including VAT, during Global Peak times and Global Off-peak Times respectively. Calls to neighbouring countries see an average decrease of 15% during peak times and 19% during Global off-peak times.
The minimum charge for local calls remains unchanged at 59,4c, including VAT, as does the per minute rate of 38c, including VAT, with a small increase in the Callmore rate (from 16c to 17c per minute, including VAT).
There is, however, a 12% increase in line rentals. The monthly rental on analogue lines will increase to R111,90, including VAT for residential, and R148,68, including VAT for business.
September says Telkom's operational plans are well in place to deal with the anticipated increasing DSL demand due to increased volume because of the price reduction. Moreover, about 40% of new customers have opted for the new Self Install offering, which allows customers to do the portion of the installation that takes place on their premises themselves.