Telkom has filed its tariff changes with the Independent Communications Authority of SA (ICASA), detailing an overall increase in prices of less than 1%.
Despite heavy pressure on the company's bottom line, Telkom has only increased a few of its product prices. The company has also turned its focus to broadband offerings, keeping the rate unchanged, likely in the hope of attracting more volumes.
However, the company will have difficulty encouraging consumers to adopt its products, without an uncapped offering. Affordable uncapped broadband products flooded the market earlier this year, and have significantly changed the market and access prices.
However, Telkom has yet to produce on what will fit the consumer.
“In our drive to make telecommunications more affordable and accessible, while aligning tariffs with costs, as well as our endeavour to defend and grow our business, I believe that we have, in general, managed to contain upward tariff adjustments fairly adequately,” says Nombulelo Moholi, MD of Telkom SA.
Telkom yesterday released dismal annual results, showing another decline in fixed-line voice customers. The company says it will now target the broadband market aggressively in the hope of stemming the tide.
Part of the plan will be realised in August, when the company formally releases its 10Mbps lines for Internet customers. Telkom has been testing the offering for over a year, and many exchanges have already been upgraded to the higher speeds, with some customers reporting 12Mbps.
Telkom's most popular product, DoBroadband, is one of the few areas where it is still seeing growth, with an increase of 25.4% over the year. ADSL subscribers increased by 18.1% over the year.
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