Media Release

Telkom increases data caps

Following the successful increase of data caps for the Telkom Internet AllAccess products four months ago, Telkom today announced another permanent increase in the monthly allowance on its consumer as well as business broadband offerings at no additional cost.

Effective 1 February, Telkom will permanently increase the monthly DSL blended data cap on the following products: 4GB Telkom Internet AllAccess will increase to 5GB; 8GB Telkom Internet AllAccess will increase to 10GB and the 16GB Telkom Internet AllAccess will increase to 20GB.

These cap increases improve the value of both the consumer Do products, and the business TBiz discount bundles.

Telkom also highlighted that for R20 more 1GB Telkom Internet AllAccess customers currently paying R79 for their service can upgrade to the 5 GB Telkom Internet AllAccess package for only R99 per month.

"In the case of retail customers, this is the second time since September 2011 that Telkom has increased their monthly data allowances for no extra charge. This is just a simple way of expressing our appreciation to our customers for their support," says Steve Lewis, Managing Executive: Product House.

To cater for the Internet needs of business, especially small and medium businesses, Telkom Business launched the TBiz range of broadband products last October.

The TBiz range has been well received and Telkom is also increasing the caps on the following TBiz Capped Discount Bundles at no additional cost: 8GB TBiz Entry will increase to 10GB; 16GB TBiz Basic (offered at 384kpbs) will increase to 20GB and the 16GB TBiz Advanced (offered at 1MB) will to 20GB. Customers still have the option to create their own bundles from the range of line, internet usage and VAS elements that are available.

Telkom Business has also launched additional Internet usage packages, shaped and unshaped, to give businesses a wider range of options on Internet bandwidth usage to bundle with DSL service.

"Our value proposition to our business customers is strongly geared not just to offer basic connectivity, but to provide the tools to gain the advantage of productivity, cost savings and market differentiation," says Lewis.

"The demand for more broadband is ever present. Telkom remains committed to meeting, and where possible, exceeding this demand, in a responsible manner," concludes Lewis.

END

Additional Information

Telkom Internet AllAccess packages from 1 February 2012

Prices include VAT

Please note that the current 1 GB Telkom Internet AllAccess Standard R79 package will remain unchanged.

Free local data on these packages will also remain unchanged.

All existing customers' usernames will stay unchanged.

DoBroadband products from 1 February 2012:

• View DoBroadband products from 1 February 2012:

* Local- only data is uncapped and customers will be charged R15.00 per GB if the promotional free local- only data allocation is exceeded.

Business Broadband

TBiz Capped discount bundles from 1 February

Prices exclude line rental.

Business modem and ADSL port installation included on all two year contracts.

Customers are welcome to migrate to TBiz bundle offerings without penalty even if you are in an existing contract.

Additional Telkom Business Internet usage packages, shaped and unshaped, can be viewed here.

For further enquiries, please contact:

PYNEE CHETTY

Senior Specialist: Media Relations
Tel.: (012) 311-5247
Cell: 081 389 7874
Email: chettpr2@telkom.co.za

or

LEIGH-ANN FRANCIS

Specialist: Media Relations
Tel.: (012) 311-7114
Cell: 081 391 4780
Email: francilm@telkom.co.za

About Telkom

Telkom is a leading communications services provider in South Africa and on the African continent. We had consolidated normalised operating revenue from continuing operations of R33.4 billion and normalised profit for the year from continuing operations of R2.4 billion for the year ended 31 March 2011. Total assets from continuing operations amounted to R54.3 billion and equity attributable to the owners of Telkom to R29.6 billion as of 31 March 2011. The group generated normalised free cash flow of R3.5 billion for the year ended 31 March 2011.

As of 31 March 2011, we had approximately 4.2 million telephone access lines in service and 99.9% of our telephone access lines were connected to digital exchanges. We offer business, residential and payphone customers a wide range of services and products, including:

• fixed-line subscription and connection services to post-paid, prepaid and private payphone customers using PSTN (Public Switched Telephone Network) lines, including ISDN (Integrated Services Digital Network) lines, and the sale of the subscription based value-added voice services and customer premises equipment rental and sales;
• fixed-line traffic services to post-paid, prepaid, and payphone customers, including local, long distance, fixed-to-mobile, international outgoing and international voice-over-internet protocol traffic services;
• 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 centre operations and internet 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;
• e-commerceincluding internet access service provider, 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 its mobile brand called 8•ta; and
• other services including directory services, through Trudon (Proprietary) Limited, wireless data services, through Swiftnet (Proprietary) Limited and internet services outside South Africa, through iWayAfrica Group (integration of Africa Online Limited and MWEB Africa Limited).