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Telkom - Files an overall tariff decrease of 3% effective September 1, 2005
Telkom SA Limited
(Registration Number 1991/005476/06)
ISIN ZAE000044897
JSE and NYSE Share Code TKG
("Telkom")
Telkom SA Limited files an overall tariff decrease of 3% effective September 1,
2005
Telkom SA Limited has filed its September 2005 tariff adjustments with the
Independent Communications Authority of South Africa (ICASA), in accordance with
the Telecommunications Act, 103 of 1996, and the Price Control regulation. The
Price Control regulation imposes a price cap formula on a basket of specified
services, 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; ADSL products and services and the Megaline
product.
Currently, the overall tariffs for all services in the basket may not be
increased by more than 3.5% 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 measured for April. CPI was 3.4% for April
2005.
The Price Control regulation also makes provision for the carry over of
allowable rate benefits that were not used in the prior filing, in terms of the
general Price Control formula, to be claimable in the next filing. In the
January 2005 annual tariff increases Telkom did not utilise the full allowable
rate benefits. The amount carried over to the September 2005 tariff increases
has a 0.2% impact on the allowable increase in tariffs.
Based on CPI and the carry over allowance from the prior year, Telkom"s
allowable tariff adjustment for the regulated basket of services is an increase
in revenue of 0.1%. However, the significant price reductions in certain
services will result in an overall price decrease of 3%, if approved by ICASA.
The price adjustments for ADSL and international private leased circuits will be
effective from August 1, 2005. All other price adjustments proposed will be
effective September 1, 2005, if approved by ICASA.
Key tariff changes
The following tables set forth subscription and connection tariffs as of
September 1, 2005 and January 1, 2005. Residential and business installation and
monthly rental tariffs for PSTN postpaid and prepaid services will increase 8.4%
and 6.0% respectively from September 1, 2005. ISDN basic rate monthly rental
tariffs will remain unchanged.
As of September 1, 2005
PSTN PSTN ISDN2a ISDN30
Postpaid Prepaid Basic Primary
(ZAR, including value-added tax)
Business
Installation 316.10 n/a 605.10 23,876.00
Monthly rental 122.60 n/a 245.00 3,677.87
Residential
Installation 316.10 182.50 605.10 n/a
Monthly rental 92.28 57.25 220.50 n/a
As of January 1, 2005
PSTN PSTN ISDN2a ISDN30
Postpaid Prepaid Basic Primary
(ZAR, including value-added tax)
Business
Installation 291.60 n/a 558.20 22,026.00
Monthly rental 115.65 n/a 245.00 3,469.60
Residential
Installation 291.60 168.40 558.20 n/a
Monthly rental 87.05 54.00 220.50 n/a
The following table sets forth postpaid and prepaid traffic tariffs as of
September 1, 2005 and January 1, 2005. Postpaid local calls peak traffic tariffs
per minute will decrease 5.0%, postpaid long distance peak and off-peak tariffs
will decrease by 10% and postpaid fixed-to-mobile tariffs will remain unchanged.
As of January As of September
1, 2005 1, 2005
Peak1 Off Peak Off
peak (2 (1) peak (2
) )
(ZAR, including value-added
tax)
Postpaid services (residential
and business)
Local minimum call charge 0.59 0.59 0.59 0.59
(0-50km) for first unit (3)
Local call rate per minute 0.40 0.16 0.38 0.16
(0-50km) after first unit3
Long distance minimum call 0.89 0.89 0.80 0.80
charge (>50km) for first unit
(4)
Long distance call rate per 0.89 0.45 0.80 0.40
minute (>50km) after first
unit (4)
Fixed-to-mobile call rate per 1.89 1.17 1.89 1.17
minute (5)
Prepaid services (residential
only)
Local minimum call charge 0.59 0.59 0.59 0.59
(0-50km) for first unit6
Local call rate per minute 0.46 0.18 0.43 0.18
(0-50km) after first unit (6)
Long distance minimum call 0.89 0.89 0.80 0.80
charge (>50km) for first unit
(7)
Long distance call rate per 1.06 0.53 0.95 0.48
minute (>50km) after first
unit (7)
Fixed-to-mobile call rate per 1.89 1.17 1.89 1.17
minute (5)
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 94 seconds (January 1, 2005: 89 seconds)
and for off peak calls is 223 seconds.
4. The first unit for peak calls is 60 seconds and for off peak calls is 120
seconds
5 Calls are charged in increments of 60 seconds for the first minute and in
increments of 30 seconds thereafter.
6. The first unit for peak calls is 83 seconds (January 1, 2005: 78 seconds)
and for off peak calls is 195 seconds
7. The first unit for peak calls is 51 seconds and for off peak calls is 101
seconds.
The following table sets forth the fixed-to-mobile retail interconnection
tariffs, including the termination rates paid to mobile operators and retention
rates and mobile-to-fixed interconnection tariffs as of September 1, 2005 and
January 1, 2005. Fixed-to-mobile tariffs and mobile-to-fixed tariffs remained
unchanged from January 1, 2005.
As of January As of September
1, 2005 1, 2005
Peak Off Peak Off
(1) peak (1) peak
(2) (2)
(ZAR, including value-added
tax)
Fixed-to-mobile retail rate 1.89 1.17 1.89 1.17
Termination rate paid to 1.43 0.88 1.43 0.88
mobile operators
Retention rate 0.46 0.29 0.46 0.29
Mobile-to-fixed retail rate
Termination rate paid to 0.31 0.17 0.31 0.17
Telkom
1. Monday to Friday 7 a.m. to 8 p.m.
2. Monday to Thursday 8 p.m. to 7 a.m. the next morning and Friday 8 p.m. to
Monday 7 a.m.
The following table sets forth the international outgoing traffic tariffs per
minute as of September 1, 2005 and January 1, 2005, for business and residential
customers (postpaid and prepaid) to the ten most frequently called countries
based on traffic.
Proposed tariffs for calls to international destinations remain unchanged from
January 1, 2005. In January 2005, international tariffs were reduced by an
average of 28%.
As of January As of
1, 2005 September 1,
2005
Peak Off Peak Off
(1) peak (1) peak
(2) (2)
(ZAR, including value-added tax)
United Kingdom R1.70 R1.50 R1.70 R1.50
Zimbabwe R1.66 R1.30 R1.66 R1.30
United States R1.70 R1.50 R1.70 R1.50
Namibia R1.66 R1.30 R1.66 R1.30
Botswana R1.66 R1.30 R1.66 R1.30
Mozambique R2.70 R2.50 R2.70 R2.50
Germany R2.00 R1.80 R2.00 R1.80
Swaziland R1.66 R1.30 R1.66 R1.30
Australia R1.70 R1.50 R1.70 R1.50
Lesotho R1.66 R1.35 R1.66 R1.35
1. Monday to Friday 8 a.m. to 8 p.m.
2. Monday to Thursday 8 p.m. to 8 a.m. the next morning and Friday 8 p.m. to
Monday 8 a.m.
Telkom also proposes an average price decrease of 10.9% for all data products.
The prices for International Private Leased Circuits (IPLCs) via the submarine
cable and satellite will be reduced by 28%. TelkomInternet remains unchanged at
R79 per month for dial-up services. 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 As of
January 1, September
1,
2005 2005
(ZAR, including value-
added tax)
ADSL installation charges
HomeDSL 192/ DSL 384/DSL 512 404 404
BusinessDSL 512 404 404
ADSL service charges
HomeDSL 192 n/a 270
HomeDSL 384 449 359
HomeDSL 512 680 477
BusinessDSL 512 800 477
Diginet (64kbs) 2,236 2,214
Diginet Plus (512kbs) 6,165 5,244
Megalines
2 Mbit/s - Bronze 13,828 11,953
2 Mbit/s - Silver 18,046 15,419
34 Mbit/s - Silver 104,572 89,613
140 Mbit/s - Silver 345,591 296,246
Johannesburg
July 22, 2005
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
All statements contained herein, as well as oral statements that may be made by
us or by officers, directors or employees acting on behalf of the Telkom Group,
that are not statements of historical fact constitute "forward-looking
statements" within the meaning of the US Private Securities Litigation Reform
Act of 1995, specifically Section 27A of the US Securities Act of 1933, as
amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as
amended. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause our actual results to be
materially different from historical results or from any future results
expressed or implied by such forward-looking statements. Among the factors that
could cause our actual results or outcomes to differ materially from our
expectations are those risks identified under the caption "Risk Factors"
contained in item 3 of Telkom"s most recent annual report on Form 20-F filed
with the U.S. Securities Exchange Commission (SEC) and our other filings with
the SEC, available on Telkom"s website at www.telkom.co.za/ir. You should not
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 hereof either to conform them to
actual results or to changes in our expectations.
Date: 22/07/2005 05:14:03 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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