JSE-listed telecommunications company Telkom has announced that it will be increasing fixed-line voice and broadband tariffs and specific mobile tariffs and services effective from August 1, the first tariff increase in over two years.
According to Telkom, the increases will affect all fixed voice calling plans, Fibre to the Home (FTTH), Digital Subscriber Line (DSL) and Pure Connect products.
Telkom says certain tariff increases for mobile products will be seen in increased monthly subscription fees but that the increases will not impact mobile customers who have subscribed within the Smart Broadband Data Portfolio and current FreeMe mobile voice offerings.
The company says there will be an increase in out-of-bundle rates for mobile voice services from R0.70 to R0.75 and data services from R0.30 to R0.32 per megabyte (MB) of data, resulting in an increase on most tariffs.
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Small to medium enterprises will also see increases on most legacy product subscription fees and will experience similar price increases on business DSL and bundle offerings.
“The same increases will also apply to new installations and to customers on fixed voice packages across copper and fibre technologies, including Fixed Line Look Alike (FLLA),” it says.
“There will be no increase in standard call rates on these technologies.”
The company confirmed that it will adjust ASDL (asymmetric digital subscriber line) one megabit per second (Mbps) and 2Mbps speed and pricing to the 5Mbps product as part of the tariff increase.
“Customers will get the benefit of the faster speed with the price adjustment,” it says.
Telecom analyst Arthur Goldstuck says the removal of lower-speed ADSL options shows that this service is on its way out and that managing multiple speeds on the same (operator) network is not as cost-effective as offering a higher speed at the same price.
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Goldstuck says the price increases are small and represent a price drop when measured against inflation.
“It is clear that Telkom recognises the financial pressures facing SMEs and their customers and is making an effort to avoid adding to the pain.”
Telkom Consumer Business CEO Lunga Siyo says: “The imminent increase of tariffs across our fixed voice, ADSL, FTTH and mobile offerings will enable us to continue to service our customers effectively, including small and medium businesses whilst ensuring that we remain competitive.”
Telkom says it will improve its services and remove throttle policies in its home unlimited portfolio to offer an uncapped service and an upgrade on all DSL services below 5Mbps.
“We believe the increase is necessary to maintain our value-driven, high-quality product and service offerings to all our subscribers,” says Siyo.
Read: Telkom’s mobile growth story is ending. Now what?
Nondumiso Lehutso is a Moneyweb intern.