| Mon 15 Nov 2004, 11:19 | | Telkom SA Limited files an average tariff increase |
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Telkom - Telkom SA Limited files an average tariff increase of 0.2% for 2005
Telkom SA Limited
(Registration Number 1991/005476/06)
ISIN ZAE000044897
JSE and NYSE Share Code TKG
(`Telkom`)
Telkom SA Limited files an average tariff increase of 0.2% for 2005
Telkom SA Limited has filed its 2005 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, 2004. CPI was 1.3%
at September 30, 2004.
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 2004 annual tariff increases Telkom did not utilise the full
allowable rate benefits. The amount carried over to the 2005 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 0.2%, effective from January 1, 2005.
Key tariff changes
The following tables set forth subscription and connection tariffs as of January
1, 2005 and January 1, 2004.
As of January 1, 2005
PSTN PSTN ISDN2 ISDN30
Postpaid Prepaid Basic Primary
(ZAR, including value-added tax)
Business
Installation 291.60 n/a 409.00 22,026.00
Monthly rental 115.65 n/a 230.50 3,469.60
Residential
Installation 291.60 168.40 409.00 n/a
Monthly rental 87.05 54.00 195.90 n/a
As of January 1, 2004
PSTN PSTN ISDN2 ISDN30
Postpaid Prepaid Basic 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
The following table sets forth postpaid and prepaid traffic tariffs as of
January 1, 2005 and January 1, 2004.
As of January 1, 2004 As of January 1, 2005
Peak Off peak Peak Off peak
Rates (1 ) Rates(2) Rates(1) Rates(2)
(ZAR, including value-added tax)
Postpaid services
(residential and
business)
Local minimum call 0.56 0.56 0.59 0.59
charge (0-50km) for
first unit(3)
Local call rate per 0.38 0.15 0.40 0.16
minute (0-50km) after
first unit(3)
Long distance minimum 0.99 0.99 0.89 0.89
call charge (>50km) for
first unit(4)
Long distance call rate 0.99 0.50 0.89 0.45
per minute (>50km)
after first unit(4)
Fixed-to-mobile call 1.84 1.13 1.89 1.17
rate per minute
(Vodacom)
Fixed-to-mobile call 1.84 1.13 1.89 1.17
rate per minute (MTN)
Fixed-to-mobile call 1.84 1.13 1.89 1.17
rate per minute (Cell
C)
Prepaid services
(residential only)
Local minimum call 0.56 0.56 0.59 0.59
charge (0-50km) for
first unit(5)
Local call rate per 0.43 0.17 0.46 0.18
minute (0-50km) after
first unit(5)
Long distance minimum 0.99 0.99 0.89 0.89
call charge (>50km) for
first unit(6)
Long distance call rate 1.17 0.59 1.06 0.53
per minute (>50km)
after first unit(6)
Fixed-to-mobile call 1.84 1.13 1.89 1.17
rate per minute
(Vodacom)
Fixed-to-mobile call 1.84 1.13 1.89 1.17
rate per minute (MTN)
Fixed-to-mobile call 1.84 1.13 1.89 1.17
rate per minute (Cell
C)
(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.
(4). The first unit for peak calls is 60 seconds and for off peak calls is 120
seconds
(5). The first unit for peak calls is 78 seconds and for off peak calls is 194.5
seconds
(6). The first unit for peak calls is 51 seconds and for off peak calls is 101
seconds.
Tariffs for calls to international destinations will on average decrease by 28%
As of January 1, 2004 As of January 1, 2005
Peak Off-peak Peak Off-peak
(ZAR, including value-added tax)
Minimum charge 99 c 99c 89c 89c
UK R3.12 R2.81 R1.70 R1.50
USA R3.33 R3.02 R1,70 R1.50
Australia R3.01 R2.70 R1.70 R1.50
India R6.63 R5.98 R2,30 R2.00
Nigeria R6,68 R6,29 R3,30 R3,00
Pakistan R7.79 R6.70 R2.70 R2.40
China R5.95 R5.35 R3.60 R3.35
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,
2004 2005
(ZAR, including value-added tax)
ADSL connection
charges
Residential 404 404
Business 404 404
ADSL service charges
Residential 680 680
Business 800 800
Diginet (64kbs) 2,196 2,236
Diginet Plus (512kbs) 6,165 6,165
Megalines
2 Mbit/s 16,963 16,188
34 Mbit/s 143,412 136,800
140 Mbit/s 483,588 461,244
Johannesburg
November 15, 2004
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 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, including, but
not limited to, increased competition in the South African fixed-line and mobile
communications markets; developments in the regulatory environment; Telkom`s
ability to reduce expenditure, customer non-payments, theft and bad debt; the
outcome of arbitration or litigation proceedings with Telcordia Technologies
Incorporated and others; general economic, political, social and legal
conditions in South Africa and in other countries where Vodacom invests;
fluctuations in the value of the Rand and inflation rates; our ability to retain
key personnel; and other matters not yet known to us or not currently considered
material by us. 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: 15/11/2004 08:45:04 AM
Produced by the JSE SENS Department
