I think what this says is that South Africa is slowly (way to slowly in my opinion) moving towards the same point as the rest of the world, where bandwidth is nothing more than a commodity item and the providers and plays have to compete on value adds. In a highly competitive market, there is very little profit to be made on bandwidth in reality, it has to be made elsewhere and that's what drives innovation and increases service levels etc, because the differentiating factor when choosing an ISP is no longer price. What I'd hope to see in the next 2 to 3 years is that the prices in South Africa have fallen to this kind of level and we can start seeing new products, better service and all the other benefits of competition that tend to be forgotten when everyone is so focused on the price.
Who knows, maybe we'll even start to see decent SLA's (cause the SLA's offered in South Africa are a joke compared to the rest of the world, with most of the tier-1 providers offering anywhere from 99.9 -> 100% availability on circuits taken out of data centres, complete with latency and jitter guarantees etc, infact NTT's standard SLA states "For every hour of downtime you experience, we will credit you a days service")
*Shrug* all in all, bring on the future, and once the competition is properly entrenched, we can sit back and see which of the companies are really capable of playing in this market. Hopefully the incumbents will realize this is no longer a childs play pen where they can throw their toys and have their own way all the time, they actually have to get up and take some responsibility if they wanna survive