Report says Telkom responsible for increased inflation in 2002

A new report by South African firm Efficient Research claims that monopoly fixed line operator Telkom SA was responsible for pushing up the country’s inflation rate by one percentage point in 2002. Whilst the operator’s rental and connection charges are among the lowest in the world, its call charges are some of the highest. The report claims that Telkom’s high telephony and internet access charges ‘contributed to the high cost of doing business in South Africa’. A Telkom spokesperson has dismissed the claims as ‘misplaced’.