In a move that will likely impact the wallets of millions of South Africans, Telkom, the majority government-owned telecom operator, has announced plans to increase tariffs for its mobile and fibre services. The price hike, set to take effect on April 1, 2025, will see a 12% increase for mobile services and a 6% increase for fibre services, citing rising operational costs and external economic pressures.

The telecom tariff hike comes on the heels of another significant price increase, this time from Eskom, the state-owned power company, which will also take effect on April 1, 2025. This double whammy will add more pressure to the pockets of 24 million subscribers who use Telkom's services. The telecom operator has attributed the price increase to the rising cost of doing business, which has been exacerbated by South Africa's inflation rate, which has quickened by 40 basis points since October 2024.

For consumers, the new prices mean higher bills. A 50Mbps fibre plan that currently costs R629 ($35) will rise to R665 ($37), while a 100Mbps package will go from R909 ($50) to R965 ($53). These hikes will add up for businesses and households already struggling with rising costs. However, competitors might see this as an opportunity to attract cost-conscious customers by stabilising their prices.

It remains to be seen whether other telecom providers, including MTN and Vodacom, will follow Telkom's lead and increase their prices. The economic climate may force them to do so, even if it risks customer dissatisfaction. While Eskom's price increases have pushed more South Africans toward solar energy, there is little alternative to Telkom's services. However, competitors might see this as an opportunity to attract cost-conscious customers by stabilising their prices.

In related news, Starlink, Elon Musk's satellite broadband provider, has become Kenya's seventh-largest internet service provider, overtaking local heavyweights like Dimension Data and Liquid Telecommunications Kenya. The company's growth is expanding satellite internet adoption, but it's also facing regulatory pushback from the Kenyan government.

Meanwhile, Vendease, a Y Combinator-backed Nigerian food procurement startup, is restructuring its employee salaries, replacing traditional compensation with a performance-based pay system. The new model will see all employees receive equal salaries, which will be increased over time after performance reviews, with the unpaid parts of their salaries converted to equity options.

In other news, MultiChoice Group has announced price increases for its DStv satellite and Showmax streaming platforms in South Africa, with football fans bearing the brunt. The price hikes, effective on April 1, 2025, will see the Showmax Premier League package increase by 43.5%, climbing from $3.80 to $5.45 per month.

As the tech industry continues to evolve, it's clear that companies are facing significant economic pressures. From telecom operators to startups, businesses are being forced to adapt to changing market conditions, often at the expense of their customers. As the situation unfolds, it remains to be seen how consumers will respond to these price increases and how companies will navigate these challenging times.