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Johannesburg - Consumers are questioning why telecoms company Telkom is increasing its line rental prices.
On Friday, Fin24 reported that Telkom plans to hike line rental prices 13% from R166 per month to R189 per month on May 1.
Line rental is the monthly fee Telkom charges customers for active phone lines. Telkom then also charges consumers extra for voice and data services in addition to line rental.
The planned increase comes after Telkom hiked line rental prices in August last year from R157 per month to R166.
Explaining the price increases, Telkom’s managing executive for group communication Jacqui O’Sullivan said, “The pricing updates are part of Telkom’s rationalisation of products and services. Factors that have influenced these fixed line rental changes include inflation, along with the access line deficit. The updates required swift implementation on Telkom’s part. We continue to extensively invest in infrastructure to provide better services and value to our customers, making the product rationalisation an imperative.”
“The adjustment also facilitates Telkom’s improvement to its voice packages to offer better value to customers, particularly the 'unique unlimited' plan that includes line rental, as well as unlimited anytime calls to fixed and mobile networks, at a flat rate of R599 per month,” said O’Sullivan.
However, Fin24 users have criticised the move.
Fin24 user HA Botha expressed displeasure at the price hike and the effect it could have.
“Us as pensioners over 60 use Telkom to stay in touch with our children, family and friends. This is our lifeline. This is also how we keep in touch via Skype and e-mails,” said Botha.
“Now they talk about a 13% increase. What happened to inflation that is supposed to hover around the 5% mark. Is this increase to help with wage demands or infrastructure? Come on Telkom, you have the monopoly, don’t abuse it by hitting us twice in such a short times,” said Botha.
Fin24 user Geraldo Cacho said, “Ridiculous. Should be in line with CPI (consumer price index).”
Meanwhile, Fin24 user Percy Koff also said that line rental is like another tax.
“This is just another way of collecting extra cash from the already overtaxed and overburden Joe Public in this country.
“We must be the most ripped off people in the world ... when are we going to stand up and say enough is enough.
“If it’s not petrol then it is electricity or air fares or road taxes next will be the VAT (value added tax) and this will just continue until we have nothing left to give,” said Koff.
Fin24 user Liezl said that the likes of Telkom’s line rental price hikes highlights how South Africans could be paying more for telecom services than their global counterparts.
“Personally I think that SA's telecom industry, Telkom and mobile, is already grossly overpriced when compared to prices in the rest of the world, including the developing world. You only need to do a cost of living comparison between Johannesburg or Cape Town and other major cities on www.numbeo.com to see the differences,” said Liezl.
CORRECTION: Fin24 earlier incorrectly wrote that Telkom line speeds were being increased. This has been corrected. It is the Telkom line rental prices that are being increased.
