ADSL costs

[fb1]

Has telkom ever provided any information on how much it costs them to provide adsl. A justification for the prices they charge? Also does anyone know what kind of profit margin they make on adsl, as compared to the margins that international firms make. Would be interesting to see.

 

[MaD]

Their justifications are numerous but they predominantly say that it is expensive to run the technology and its dependent on achieving a critical mass of users. Understandably its expensive for them to run as they use ATM still, unfortunately for them.

They also say maintenance of the local loop is expensive. They also say they have investments to pay off (DSLAM's etc).

There are definitely expenses Telkom has to fork out for but none of them warrant the current prices however.

Their profit margin is massive - but they definitely won't admit to it.. their margins are the envy of telecoms companies in the First World even.