In a move that largely surprised the market, Telkom (JSE:TKG) announced that it will slash prices of it ADSL broadband products by an average of around 18%. These pricing changes have been filed with the Independent Communications Authority of South Africa, and will be effective from August 1.
The monthly rental on Telkom’s 384kbps DSL service will now be R152, a 38% change (old rate: R245). Rental on the 512kbps DSL service will be R326 (10% decrease) and its 4mbps service R413 (20% lower). These costs obviously exclude ISP costs and voice line rental (which is still mandatory). Telkom contrasts the planned 384kbps prices with the tariffs from March 2005 (R449 per month). At that stage, 512kbps access cost R599.
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Source: Money Web
Thank you telkom for an 18 percent decrease on a 1000 percent over priced product. Your legal extortions are legendary. My entire salary can not cover the cost of the type of internet connection I need. No kid in SA can play a good online game without finishing a gig in a night. Your tariffs for data are madness as downloads and size of sites will become exponentially bigger. You have hindered other service providers and legaly stopped competition. You need to adopt international tariffs. Otherwise legal action needs to be taken against you.
Agree 100%. This monopoly pricing actually halts economic progress – in countries where internet access is reasonably priced, people sell their wares to buyers all over the world – in SA, this can’t happen as access or setting up an online shop becomes too expensive for the man/woman in the street.
No wonder My family can’t afford broadband in South Africa. In New Zealand it is very affordable. The prices in SA are quite ridiculous.
I think that we should take into consideration the state of infrastructure in the country with regards to Broadband services, obviously as the infrastructure and demand grows the price will decrease.