Telkom will increase the price of its entry-level ADSL service by R8 per month (Ex VAT), which coincides with the company’s planned ADSL upgrades.
Official Telkom Wholesale communication stated that the planned ’384kbps to 1Mbps’ and ’1Mbps to 2Mbps’ upgrades will start in August 2012, and will last for approximately 6 weeks.
Telkom warned that the speed of the new services and the expected customer experience relies on various factors, some of which are not in Telkom’s control.
ADSL price increase
Telkom Wholesale informed Internet Service Providers (ISPs) that there will be a ‘marginal price increase’ of up to R8 (Ex VAT) per month on the entry-level ADSL access service.
According to Telkom Wholesale, the higher price with the higher speed will “assist to grow the broadband market in SA and help service providers to differentiate on their retail offerings”.
The wholesale price for Telkom’s upgraded 2Mbps service will remain the same as the current 1Mbps service.
Telkom added that the higher speeds will be complemented with rich media content in future (like video and music on demand and IP TV) which will further boost fixed line broadband access in South Africa.
Telkom was asked for official comment about the planned entry-level ADSL price increase, but the company did not provide feedback regarding this issue.
Telkom would also not say whether it plans to increase the retail rates for its entry-level ADSL products.
It is understood that some ISPs are currently in discussions with Telkom about their planned ADSL price increase. These discussions may involve Telkom’s retail plans and whether the company is disadvantaging ISPs through its latest wholesale price hike.
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