Telkom launched its first uncapped ADSL services in 2011, partly because of competitive pressure from Internet Service Providers such as MWEB.
Over the last financial year Telkom’s ‘Internet all access subscribers’ declined by 3.75 – down from 543,316 in March 2011 to 523,057 in march 2012.
The decline in Internet customers came despite the fact that the company grew its ADSL subscriber base by 10%, clearly showing that that many ADSL users are selecting ISPs other than Telkom Internet for their data needs.
According to Telkom it remains heavily focused on increasing broadband and data-related revenue to diversify its reliance away from fixed-line voice.
“For the first time in the SA market a ‘free 3-month broadband’ trial was launched by Telkom. Of the total 74,924 customers who applied for the trial we ended up retaining 68% as customers,” said Telkom.
Telkom CEO Nombulelo Moholi highlighted that the company will increase ADSL speeds starting in August 2012, and that it plans to boost entry level speeds to 2Mbps and increase top speed to 40Mbps by 2015.