Why Telkom is increasing line rental prices

Telkom has announced it’s home line rental prices will increase from R166 per month to R189 per month from 1 May 2015.
This price increase follows an increase from R157 per month to R166.50 per month in 1 August 2014.
Telkom said in communication to subscribers that while “landline rental has gone up, you can enjoy unlimited calls if you move to the Evening and Weekend plan for only R17 extra per month”.
The operator also announced that existing weekender plan customers, who currently pay R187 per month, will be moved to the evening and weekend plan at R206 per month.
Apart from the weekender change, Telkom’s fixed-line calling plan prices have mostly remained unchanged.
Why Telkom is increasing line rental pricing
Jacqui O’Sullivan, Telkom’s managing executive for group communication, explained that 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,” said O’Sullivan.
“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.”
She added that the adjustment also facilitates Telkom’s improvement to its voice packages to offer better value to customers.
This is particularly visible with Telkom’s “unique unlimited” plan, O’Sullivan said, that includes line rental, as well as unlimited anytime calls to fixed and mobile networks, at a flat rate of R599 per month.
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