Expect local call rates to rise next year

BUSINESS SHOULD brace for an increase in local call rates next year as Telkom looks for ways to offset the expected revenue loss that will result when voice-over internet protocol (VoIP) begins cutting the cost of international and long-distance local calls. From February 1, 2005 VoIP will be legalised in South Africa, allowing people to make international and long-distance calls through their computers at close to the cost of a local call. Telkom has made it clear that the loss of revenue from international and long-distance tariffs, which are likely to fall significantly, will force it to compensate elsewhere. CEO Sizwe Mxasana told parliament last week that Telkom’s local three-minute call costs were below the international average.