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19 September 2013

Telkom announces wholesale price reductions

Telkom today announced tariff reductions on certain wholesale products in keeping with the obligations in this regard in the settlement agreement reached with the Competition Commission, which was made an order of the Competition Tribunal on 18 July 2013.

Telkom and the Commission had agreed which products will be subject to price reductions, as well as the extent to which the tariffed prices of those products would be reduced within the 2014 financial year.

Accordingly, and effective 17 October 2013, Telkom Wholesale will reduce the effective tariff prices of IP Connect by 8%; Diginet by 4%;CHIPAC by 4%; Ethernet Express by 6%; Metro Clear by 6% and IPLC’s by 25%.

Additionally, Telkom Wholesale will implement an effective 10% price reduction on the off the shelf prices, across the following SAIX Dedicated Access services: SAIX Silver National International 75/25; SAIX Gold National International 75/25; SAIX International IP Transit and SAIX National Plus.

"Telkom's undertakings to reduce prices was aimed at stimulating increased competition in the market with a large emphasis on wholesale," says Group CEO, Mr Sipho Maseko.

"Telkom is committed to fully complying with the provisions of the settlement agreement which is proof of a higher level of transparency within Telkom and ultimately a further expression of the foundation of a new Telkom," concluded Mr Maseko.

For further enquiries, please contact:

Pynee Chetty

Senior Specialist: Media Relations

Group Communication

Tel:+27 12 642 1716

Mobile: +27 81 389 7874

Email: chettpr2@telkom.co.za

OR

Leigh-Ann Francis

Specialist: Media Relations

Group Communication

Tel: +27 12 642 1728

Mobile: +27 81 391 4780

Email: francilm@telkom.co.za

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ABOUT TELKOM:

Telkom is a leading communications services provider in South Africa. We had consolidated operating revenue of R16.8 billion and normalised profit after tax of R1, 683 million for the period ended 30 September 2015. Total assets amounted to R41.9 billion and equity attributable to the owners of Telkom to R23.5 billion as of 30 September 2015. The group generated normalised free cash flow of R1.4 billion for the period ended 30 September 2015.

As of 30 September 2015, we had approximately 3.3 million telephone access lines in service and 1,030,441 ports connected via MSAN access. We offer business, residential and payphone customers a wide range of services and products, including:

  • fixed-line retail voice services using PSTN (Public Switched Telephone Network) lines, including ISDN (Integrated Services Digital Network) lines, and the sale of subscription based value-added voice services and calling plans;
  • fixed-line customer premises equipment rental and sales services both voice and data needs and these include PABX, Computers, Routers, Modems, Telephone handsets and other ancillary equipment;
  • interconnection services, including terminating and transiting traffic from South African mobile operators, as well as from international operators and transiting traffic from mobile to international destinations;
  • fixed-line data services, including domestic and international data transmission services, such as point-to-point leased lines, ADSL (Asymmetrical Digital Subscriber Line) services, packet-based services, managed data networking services and internet access and related information technology services;
  • Data Centre Operations includes e-commerce, application service provider, hosting, data storage, e-mail and security services;
  • W-CDMA (Wideband Code Division Multiple Access), a 3G next generation network, including fixed voice services, data services and nomadic voice services;
  • mobile communication services, including voice services, data services and handset sales through our mobile navbar-brand called Telkom Mobile;
  •  information and communication services including cloud services, infrastructure services, workspace services, global service integration management and hardware and network equipment sales locally, in seven African countries, the UK and Dubai through Business Connexion Group; and
  • other services including directory services, through Trudon (Pty) Ltd, wireless data services, through Swiftnet (Pty) Ltd.

Convergence is one of our key strategic initiatives in building a sustainable future for Telkom.  We will lead the provision of converged services in South Africa in support of our mission statement: Seamlessly connecting people to a better life.