Telkom is seeking an overall tariff increase from the Independent Communications Authority of SA (Icasa) of 1.7 percent, the telecoms giant said on Monday.

"Telkom's proposed overall annual tariff adjustments filed today (Monday) with Icasa is well below the overall increase permitted by the regulator's price control formula," Telkom said.

According to the company, Icasa used the formula of Consumer Price Index minus 3.5 percent plus carry-over from the previous year.

This refers to the carry-over of allowable rate benefits that were not used in the previous price filing.

"This formula would have allowed Telkom to file an overall increase of 19.7 percent (including carry-over of 14.8 percent) or 4.9 percent (excluding carry-over) using the April 2009 CPI of 8.4 percent as is required by regulation," Telkom added.

Telkom's new tariffs will become effective on 1 August 2009, pending Icasa's approval of the price filing.

Telkom said the following tariff adjustments had been proposed:

– The minimum charge for postpaid local calls (0-50km) remains unchanged but the per second tariffs for Standard and Callmore time increases by 4.2 cents and 2.1 cents per minute respectively.

– The tariffs for long distance calls (above 50km) remain unchanged.

– PrepaidFone (weekly and monthly) as well as postpaid residential and business line rental charges increase by 5.5 percent while the PrepaidFone Waya-Waya annual subscription will increase from R120.00 to R130.00 per annum.

– PrepaidFone local and long distance calls increase by 10 percent.

– Outgoing mobile/cellular calls and outgoing calls to Neotel, other licensed operators and Universal Service Access

Licensees remain unchanged.

– Overall, the impact on international calls rates would be 0 percent, although tariffs to certain destinations could either increase or decrease.

– The monthly subscription charges for DSL, Do Broadband and TelkomInternet remain unchanged.

– TelkomInternet all access 2Gb and 3Gb standard offering bandwidth customers will have their offerings upgraded to 3Gb and 5Gb respectively.

– Telkom Closer 1 and 2 subscription charges will increase by 7.4 percent and 5.6 percent respectively.

– Current tariffs will remain unchanged for the Telkom Closer 3, 4 and 5 calling plans.

– From 1 September 2009, Telkom Closer 1 customers will receive free local and long distance weekend calls of up to an hour during Callmore time.

Telkom said that overall, data tariffs in the basket would decrease by six percent.

"Telkom is confident that our proposed price changes will be approved by Icasa having complied with regulatory prescriptions," the group said.

Sapa