Telkom SA Limited files an average tariff adjustment of 2.7% for 2004
14 Novembre 2003 - 5:33PM
PR Newswire (US)
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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