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TKG - Telkom SA Limited - Telkom files tariff adjustment with ICASA

Release Date: 22/06/2009 14:05
Code(s): TKG
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TKG - Telkom SA Limited - Telkom files tariff adjustment with ICASA Telkom SA Limited (Registration Number 1991/005476/06) ISIN ZAE000044897 JSE and NYSE Share Code TKG ("Telkom") Telkom files tariff adjustment with ICASA Telkom`s proposed overall annual tariff adjustments filed today with Independent Communications Authority of South Africa ("ICASA") is well below the overall increase permitted by the regulator`s Price Control Formula and demonstrates Telkom`s continued drive to ensure affordable telecommunications access in South Africa. ICASA uses the formula of "Consumer Price Index ("CPI") minus 3.5% plus carry- over". This formula- would have allowed Telkom to file an overall increase of 19.7% (including carryover of 14.8%) or 4.9% (excluding carryover) using the April 2009 CPI of 8.4% as is required by regulation. Telkom`s price-filing with ICASA seeks an overall increase in its basket of products and services of 1.7%. Pending ICASA approval of the price filing, Telkom`s new tariffs will become effective on 1 August 2009. The following tariff adjustments have been proposed: the minimum charge for postpaid local calls (0-50km) remains unchanged but the per second tariffs for Standard and Callmore time increase by 4.2 cents and 2.1 cents per minute respectively. The tariffs for long distance calls (>50km) remain unchanged. PrepaidFone (weekly and monthly) as well as postpaid residential and business line rental charges increase by 5.5% while the PrepaidFone Waya-Waya annual subscription will increase from R120.00 to R130.00 per annum. PrepaidFone local and long distance calls increase by 10%. Outgoing mobile/cellular calls and outgoing calls to Neotel, Other Licensed Operators or OLOs (previously known as VANS) and Universal Service Access Licensees (USAL`s) remain unchanged. Overall, the impact on international calls rates will be 0%, although tariffs to certain destinations could either increase or decrease. The monthly subscription charges for DSL, Do Broadband and TelkomInternet remain unchanged. TelkomInternet all access 2Gb and 3Gb standard offering bandwidth customers will have their offerings upgraded to 3Gb and 5Gb respectively. Telkom Closer 1 and 2 subscription charges will increase by 7.4% and 5.6% respectively. Current tariffs will remain unchanged for the Telkom Closer 3, 4 and 5 calling plans. From 1 September 2009, Telkom Closer 1 customers will receive free local and long distance weekend calls of up to an hour during Callmore time. Overall, data tariffs in the basket will decrease by 6%. Telkom is confident that our proposed price changes will be approved by ICASA having complied with regulatory prescriptions. Pretoria 22 June 2009 Sponsor: UBS South Africa (Pty) Ltd Date: 22/06/2009 14:05:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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