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South Africa's fixed-line phone company Telkom will cut prices for costly broadband Internet access and international private leased circuit as it battles tougher competition. Telkom said in a statement it would cut ADSL prices by between 18 and 32 percent depending on the package, and will slash international private leased curcuit prices by 28 percent. The new prices would be effective from August 1.
State-controlled Telkom has been criticised for hampering the roll-out of communications in South Africa and deterring investment due to inflated prices.
The company in March slashed prices for its top-end broadband offerings and launched a new low-cost service to fight increased competition and lure more customers.
Telkom is under pressure to cut prices after the government opened South Africa's telecoms industry to competition from February 1.

Copyright Reuters, 2005

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