Facing increasing competition from iBurst and other broadband wireless internet access technologies, fixed line operator, Telkom, has reduced ADSL line prices.

Line prices will drop on the 1st of August by up to 30%.

Business 512k - R477incVAT/month (from R699)
Home 512k - R477incVAT/month (from R599)
Home 384k - R359incVAT/month (from R469)
Home 192k - R270incVAT/month (from R349)

Permanent Internet access is becoming cheaper as Telkom faces increased pressure from all sectors, including one of its majority shareholders, the South African Government. This increased pressure combined with an outstanding case against Telkom at the competition commission is driving prices downwards as the incumbent tries hard to look good in the face of mounting pressure.

Many South African ISP’’s believe an unbundling of the local loop is required to further increase competition and reduce Telkom’’s grip on infrastructure preventing affordable communications.

South African consumers and small business can look forward to future increase in ADSL speeds from Telkom as an attempt to stem the iBurst tide.

But Telkom bucks the international trend of increased speed for the same prices, with the release of slower and slower packages (192k and 384k)

Article by Mark Slingsby, RSAWeb Technical Director