first of all, i hate telkom just as much as you cats.
i have the 24 month contract. i don't pay for my ADSL. the new BILLION modems (black/charcoal ones) that telkom supplies free with the contract are VERY good. i hardly ever drop, sometimes connected for 2 - 3 days. that is the 'pro' of getting the contract.
yes, a lot will happen in the next 2 years. but that said, no SNO (second national operator) will be able to beat the prices that telkom charge at the moment, especially when they are just starting up..
i think at the end of the day though, if you can afford an ADSL router (R500 - R1000), then rather buy one and pay your monthly ADSL subscription instead of signing the contract.
peace