KL lowers overseas phone call rates

KL lowers overseas phone call rates

KUALA LUMPUR (AFP): Malaysia announced yesterday a reduction of between 6 percent and 33 percent in rates for international telephone calls and the scrapping of the flat fee system for local calls.

Energy, Telecommunications and Posts Minister Leo Moggie said the tariff revamp was aimed at reducing network congestion and promoting efficient use of telephones.

"The new tariffs will take effect from June 1," Moggie told reporters.

Local calls, currently charged a flat rate of 13 sen (5.2 U.S. cents) a call, will now cost a minimum nine sen covering the first three minutes and an additional three sen for each subsequent minute.

Moggie said about 31 international destinations would be affected by the revamp, with call charges to Australia and New Zealand falling by 33 percent while those to Canada and the United States would be reduced by 30 percent.

The current rebate for the first 100 minutes of local calls a month, worth three ringgit, would be maintained for both business and residential customers, Moggie said.

For the half year to June 1995, Telekom's pre-tax profit rose 11.2 percent from a year earlier to 877.4 million ringgit.

Moggie said the current revamp was only the first step towards rationalizing the industry.

Analysts said the lower tariffs for international calls would make Malaysia a more competitive investment venue.

Telekom officials were expected to brief the media Thursday on the impact the new tariff rates would have on its future performance.

Telekom shares closed 20 sen higher at 22.00 ringgit on the local bourse yesterday.