I have to say, I think the wrong question is being raised by this article.
The real question should be, is DSL as a standalone profit making product sustainable in the long term? I believe the answer is, only, and I stress this, ONLY in the case of *MASSIVE* customer volumes (I.E, if you're a new player, you're gonna struggle)
The margins on selling DSL have been stripped to almost nothing because of competition, and they will continue to erode as people realize that bandwidth should be a commodity. What I mean by this is, use the bandwidth to deliver services which you can profit from, don't rely on your bandwidth as your central stream of profit, because if you do, you're gonna end up disappearing the moment someone does come along that is prepared to effectively give the bandwidth away in order to subsidize the provision of another product.
Those companies that are big enough to survive on the DSL profit margins alone will need astronomically huge customer bases (if you're making R10 a customer per month, have 30k customers, you're making R300k a month, which might sound like a lot, but considering to run a network catering to 30k customers can probably run you in excess of 100 million a year turnovers, its simply not a viable business proposition). So, if you're a new comer, I believe the lesson is, if you're gonna do DSL, better have something else to back it up with
I still believe everything I wrote in
http://mybroadband.co.za/news/telecoms/11212-The-ISP-Industry-where-from-here.html
Now I just believe however that the market is starting to show signs of it, and its admittedly happening a fair bit faster than I anticipated
