Telkom SA Limited files an average tariff adjustment of 2.7% for 2004
JOHANNESBURG, November 14 /PRNewswire/ -- Telkom SA Limited has filed its
2004 tariff adjustments with the
Independent Communications Authority of South Africa (ICASA), in accordance
with the Telecommunications Act, 103 of 1996, and regulations made under
the Act. The current regulations impose a price cap formula on a basket of
specified services that Telkom previously had the exclusive right to
provide, including installations; prepaid and postpaid line rental; local,
long distance and international calls; fixed-to-mobile calls; public
payphone calls; ISDN services; the Diginet product; and the Megaline
product.
Currently, the overall tariffs for all services in the basket may not
be increased by more than 1.5% below inflation in South Africa, based on
the consumer price index (CPI) and measured using revenue for the services
in the basket at constant volumes for the prior year. In addition, the
price of any individual product or service included in the basket may not
be increased by more than 5% above inflation in South Africa in any year. Inflation is based on the year on year movement in CPI as measured at
September 30, 2003. CPI was 3.7% at September 30, 2003.
The current regulation makes provision for the carry over of allowable
rate benefits that were not used in the prior year to be claimable in the
following year. In the 2003 annual tariff increases Telkom did not utilise
the full allowable rate benefits. The amount carried over to the 2004
tariff increases will have a 0.5% impact on the allowable increase in
tariffs.
Based on CPI and the carry over allowance from the prior year, Telkom's
tariff adjustments for the regulated basket of services represent an
increase in revenue of 2.7%, effective from January 1, 2004.
Key tariff changes The following tables set forth subscription and connection tariffs as of
January 1, 2004 and January 1, 2003.
As of January 1, 2004
PSTN PSTN ISDN -2 ISDN primary
Postpaid Prepaid
(ZAR, including value-added tax)
Business
Installation 274.35 n/a 384.75 20,721.00
Monthly rental 108.80 n/a 216.82 3,264.00
Residential
Installation 274.35 158.40 384.75 n/a
Monthly rental 81.90 50.80 184.28 n/a
As of January 1, 2003
PSTN PSTN ISDN-2 ISDN primary
Postpaid Prepaid
(ZAR, including value-added tax)
Business
Installation 268.98 n/a 377.19 20,314.80
Monthly rental 101.23 n/a 201.78 3,036.96
Residential
Installation 268.98 155.27 377.19 n/a
Monthly rental 76.20 47.23 171.50 n/a
The following table sets forth postpaid and prepaid traffic tariffs as of
January 1, 2004 and January 1, 2003.
As of January 1, As of January 1,
2003 2004
Peak Off peak Peak Off peak
rates1 rates2 rates1 rates2
(ZAR, including value-added tax)
Postpaid services (residential and
business)
Local minimum call charge (0-50km) 0.55 0.55 0.56 0.56
for first unit3
Local call rate per minute 0.37 0.14 0.38 0.15
(0-50km) after first unit3
Long distance minimum call charge 0.99 0.99 0.99 0.99
(>50km) for first unit4
Long distance call rate per minute 0.99 0.50 0.99 0.50
(>50km) after first unit4
Fixed-to-mobile call rate per 1.88 1.11 1.90 1.17
minute (Vodacom)6
Fixed-to-mobile call rate per 1.88 1.11 1.84 1.13
minute (MTN)5
Fixed-to-mobile call rate per 1.88 1.11 1.84 1.13
minute (Cell C)7
Prepaid services (residential only)
Local minimum call charge (0-50km) for 0.55 0.55 0.56 0.56
first unit8
Local call rate per minute (0-50km) 0.42 0.16 0.43 0.17
after first unit8
Long distance minimum call charge 0.99 0.99 0.99 0.99
(>50km) for first unit9
Long distance call rate per minute 1.17 0.59 1.17 0.59
(>50km) after first unit9
Fixed-to-mobile call rate per minute 1.88 1.11 1.90 1.17
(Vodacom)6
Fixed-to-mobile call rate per minute 1.88 1.11 1.84 1.13
(MTN)5
Fixed-to-mobile call rate per minute 1.88 1.11 1.84 1.13
(Cell C)7
__________________ 1. Monday to Friday 7 a.m. to 7 p.m. for local and long distance calls. Monday to Friday 7 a.m. to 8 p.m. for fixed-to-mobile calls.
2. Monday to Thursday 7 p.m. to 7 a.m. the next morning and Friday 7
p.m. to Monday 7 a.m. for local and long distance calls. Monday to Thursday
8 p.m. to 7 a.m. the next morning and Friday 8 p.m. to Monday 7 a.m. for
fixed-to-mobile calls.
3. The first unit for peak calls is 89 seconds and for off peak calls
is 222.5 seconds (January 1, 2003: 238 seconds) 4. The first unit for peak calls is 60 seconds and for off peak calls
is 120 seconds 5. The peak fixed-to-mobile call rate per minute for MTN was reduced to
R1.84 as of February 1, 2003 and R1.82 as of July 1, 2003.
6. The peak fixed-to-mobile call rate per minute for Vodacom was
reduced to R1.82 as of July 1, 2003 7. The peak fixed-to-mobile call rate per minute for Cell C was reduced
to R1.82 as of July 1, 2003 8. The first unit for peak calls is 78 seconds and for off peak calls
is 194.5 seconds (January 1, 2003: 207 seconds) 9. The first unit for peak calls is 51 seconds and for off peak calls
is 101 seconds.
Tariffs for calls to international fixed-line destinations have
decreased between 3% and 6% and tariffs for calls to international mobile
destinations have increased between 6% and 8.7%.
The following table sets forth the monthly tariffs for data leased
lines using 20 km distances and ADSL service as of the dates indicated. Subscription to the ADSL service also requires the subscription to a PSTN
postpaid line.
As of January 1,
2003 2004
ADSL connection charges
Residential 404 404
Business 404 404
ADSL service charges
Residential 680 680
Business 800 800
Diginet 2,066 2,196
Diginet Plus 6,286 6,165
Megalines
2 Mbit/s 16,188 16,963
34 Mbit/s 136,800 143,412
140 Mbit/s 461,244 483,588
Johannesburg 14 November 2003 Special note regarding forward-looking statements Many of the statements included in this announcement constitute or are based
on forward-looking statements within the meaning of the US Private Securities
Litigation Reform Act of 1995, specifically Section 21E of the US Securities
Exchange Act of 1934, as amended. These forward-looking statements involve a
number of known and unknown risks, uncertainties and other factors that could
cause our actual results and outcomes to be materially different from those
expressed or implied by such forward-looking statements. We caution you not
to place undue reliance on these forward-looking statements. All written and
oral forward-looking statements attributable to us, or persons acting on our
behalf, are qualified in their entirety by these cautionary statements.
Moreover, unless we are required by law to update these statements, we will
not necessarily update any of these statements after the date of our annual
report, either to conform them to actual results or to changes in our
expectations. Telkom SA Limited files an annual report on Form 20-F with the
US Securities and Exchange Commission (SEC), which includes a detailed
description of risk factors that may affect its business. Telkom filed its
Form 20-F annual report for the year ended March 31, 2003 on August 4, 2003.
For further information you should refer to the Form 20-F and other filings
with the US SEC annual report which are available on the investor relations
website at www.telkom.co.za/ir. DATASOURCE: Telkom SA Limited Belinda Williams, Executive: Investor Relations, Tel: +27 12 311 5720, Fax: +27
12 311 5721, Cell: +27 82 571 2087
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