| Fri 14 Nov 2003, 17:27 | | Telkom SA Limited files an average tariff adjustme |
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Telkom SA Limited files an average tariff adjustment of 2.7% for 2004
Telkom SA Limited
(Registration Number 1991/005476/06)
ISIN ZAE000044897
JSE and NYSE Share Code TKG
(Telkom)
Telkom SA Limited files an average tariff adjustment of 2.7% for 2004
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, Telkoms 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 - ISDN
Postpaid Prepaid 2 primary
(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
Postpaid Prepaid primary
(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 As of January
1, 2003 1, 2004
Peak Off Peak Off
rates1 peak rates1 peak
rates2 rates2
(ZAR, including value-added
tax)
Postpaid services (residential
and business)
Local minimum call charge 0.55 0.55 0.56 0.56
(0-50km) 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 0.99 0.50 0.99 0.50
minute (>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 0.55 0.55 0.56 0.56
(0-50km) for first unit8
Local call rate per minute 0.42 0.16 0.43 0.17
(0-50km) 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 1.17 0.59 1.17 0.59
minute (>50km) after first unit9
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
__________________
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.
