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Fin24 users have questioned whether Telkom will really do away with its line rental item cost in consumers’ bills or just absorb the cost in other bill items.
Line rental is the fee Telkom charges for its customers to have an active phone line connected to their homes. Telkom users are then also charged extra for voice calls and data on top of the line rental fees.
For years, critics have lashed out at Telkom over this fee, slamming it as an unnecessary additional cost to connectivity in South Africa.
READ: Telkom's line rental fee to be a thing of the past
However, Telkom Group CEO Sipho Maseko said in an interview with BusinessDay TV this week that the company is mooting doing away with the line rental bill item.
“Very soon, in your own household, your bill will no longer have ‘line’. It will just be a package of 25GB or 50GB; we’ll price it, and there won’t be an itemised line that says line rental,” said Maseko.
“And more and more you won’t see it, because what we do see is that data traffic and usage is increasing phenomenally. And I think that we’ve been able to balance that in a very, very delicate way,” added Maseko.
Fin24 has reached out to Telkom for further explanation on the removal of its line rental bill item, but the company has not yet responded.
In the meantime, Fin24 users have reacted with scepticism to the CEO’s comments.
Fin24 user Peter wrote:
“There's the old saying: ‘You get nothing for nothing and very little for sixpence’. If Telkom scrap the line rental they will just make up that revenue with other charges. They certainly won't be giving away millions a year with free lines to consumers. To be sure we will be paying - just in another form.”
Fin24 user Gary wrote:
“No No No……..wrong wrong wrong. The name ‘line rental will be a thing of the past’ will go, but Telkom will just include the cost under another type of fee. Anyone who thinks that Telkom will do away with a million people paying R189-00 a month is naïve.”
Fin24 user Johan wrote:
“Absolute Hogwash, the fee will just be hidden in other costs. This is just a marketing ploy and Telkom remains another government controlled company abusing their privileged position in the market place. Telkom should be privatised.”
Fin24 user Sizwe wrote
“It makes no difference to me because, Telkom could not help me when I needed land line for small business. So it may be good for who reside in expensive areas, because in township we have no access to Telkom services. PERIOD.”
Fin24 user Deon is a bit more upbeat about the move but still thinks connectivity costs are prohibitive:
“Wow, that is great. Glad something is happening in a positive way. Telkom is still a Monopoly and all internet providers are playing the same game. Money, money, money! Lived in the Netherlands for a few years until the end of last year. My last bill was as follows: Euro 122 for = Top of the range TV (like DSTV premium package) – Cable TV with a decoder, Telephone and Internet with a free modem for Unlimited (no stupid throttle nonsense) access with a download speed of up to 300Mbps. It is called a ‘alles-in-1’ from Ziggo.nl. Just had a check, even cheaper packages now available! Now I ask you, what will all of this cost me in SA. R3 500 plus and few thousand for modem, decoder, installation as once of payments?”
Finally, Fin24 user Gideon welcomes the possible move:
"The suggestion by Telkom to drop line rental is a great idea, For the past two years CEO Sipho Maseko has taken Telkom forward. What is still unclear is whether this would lead to full on LLU ( Local Loop Unbundling ) which would provide fixed voice services to other providers. For me this is a massive win for the South African consumers as this move would significantly reduce the entry price for home connectivity.”
Disclaimer: All articles and letters published on Fin24 have been independently written by members of the Fin24 community. The views of users published on Fin24 are therefore their own and do not necessarily represent those of Fin24.
