Telkom jumps on call charges review

Picture: Leon Nicholas.

Picture: Leon Nicholas.

Published Oct 7, 2013

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Johannesburg - Shares of Telkom rise nearly 4 percent after the telecommunications regulatory body says it wants to reduce call termination rates by 75 percent over the next three years.

Telkom, which has been paying higher rates for calls from its landlines to mobile phones, stands to gain the most from the changes.

Under the current pricing, Telkom pays 40 cents for calls made to mobile firms such as Vodacom and MTN.

The Independent Communications Authority of South Africa proposes to slash the rate to 10 cents.

Telkom shares are up 3.7 percent at 26.16 rand, but those of rivals MTN and Vodacom are down 2.8 and 5 percent respectively. - Reuters

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