Telkom customers score

By Paul Vecchiatto, ITWeb Cape Town correspondent

Cape Town, 16 Feb 2010 Telkom is to reduce its fixed-to-mobile call rates from 1 March by 36c, from R1.65 to R1.29, per minute, which is about a 22% reduction.

In a letter presented to the Parliamentary Portfolio Committee (PPC) on Communications today, Telkom group executive for regulatory affairs Andrew Barendse wrote that these new rates have already been agreed to with MTN and Vodacom. He said the new tariffs are waiting for finalisation with Cell C and the regulator's approval of Telkom's tariffs.

“In support of the PPC's initiative and government's call to reduce the cost of communications, Telkom will, therefore, put approximately R1.3 billion back in the pocket of Telkom's customers. Telkom trusts that the PPC will find this in order,” Barendse's letter says.

Barendse wrote that, although not legally obliged, Telkom has decided to give a 100% pass through on the reduction of mobile termination rates (MTRs) to Telkom's retail customers for fixed-to-mobile calls.

“Telkom has, in the interim and in anticipation of the successful interconnection negotiations, also filed fixed-to-mobile retail rates with ICASA,” he added.

After reading the contents of the letter to members of Parliament, communications committee chairman Ismail Vadi said he welcomed the news. He indicated that Telkom would be invited to present before the committee on interconnection rates and other issues at a date still to be set.

The committee is currently questioning ICASA on its plans to reduce MTRs significantly by the end of June.