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.