02 March 2023
Telkom will increase the prices of its telecom services for mobile, voice and DSL (Digital Subscriber Line) services effective from 1 April. For fibre-to-the-home (FTTH) services, prices will increase by around 11% from 1 May.
"Like many other South African companies and businesses, Telkom has been impacted by the pressures of current macroeconomic dynamics,” said Telkom in a statement. “Upcoming price increases in fixed, ADSL, FTTH and mobile voice offers will ensure continued quality service to Telkom customers, including small and medium-sized businesses, while maintaining competitiveness.”
This rate adjustment is necessary due to economic challenges, including rising inflation. According to official figures, annual consumer price inflation (CPI) in South Africa fell to 6.9% in January 2023, from 7.2% in December 2022. Added to this are the significant load shedding carried out by the public electricity supplier Eskom which contribute to the increase in the operating costs of telecom operators.
The rate increase comes as Telkom embarks on a strategy to unlock value and shore up profits as revenues decline. In the third quarter of 2022/2023, the company saw its earnings before interest, tax, depreciation and amortization (EBITDA) fall by 13.5% to 2.5 billion rand.
