BY MARTIN CZERNOWALOW, ITWEB SENIOR JOURNALIST
[Johannesburg, 30 August 2005] - Despite the lack of formal information campaigns in the country, South Africans are seemingly becoming more informed about ADSL offerings and related products, and are taking advantage of this fast-growing market, industry observers say.
The past few months have seen exceptionally fast growth in ADSL uptake, they report.
In addition, it is understood that the recent overall price decrease in ADSL products has prompted many consumers to move away from standard Telkom ADSL modems and voice over Internet Protocol (VOIP) phones, towards other brands on the market.
Industry players say the general uptake of ADSL in SA has been fuelled by Telkom's recent decrease in ADSL tariffs, boosting subscriptions among business and private users.
South African e-tailer Jump Shopping reports that it is already seeing the benefits of the demand for non-Telkom ADSL products and Skype phones.
Jump Shopping owner Jaco Roux says ADSL modems have, since last month, become the group's best-selling product, with some 1 000 modems sold during this time.
This is a drastic surge, he explains, as sales usually number about 200 to 250 units a month. The e-tailer has also noticed a significant rise in the sale of Skype handsets, which totalled more than 220 units during July.
“It seems that Telkom's ADSL tariff decrease is driving this demand,” Roux states, adding that consumers are also becoming noticeably better educated about ADSL.
“In the past, we received mainly highly-technical queries about our ADSL products. Now people seem far more clued-up and are more interested in what they can get for their money.”
MyADSL founder Rudolph Muller tells ITWeb that there has been growth in the uptake of non-Telkom ADSL products, as consumers are realising that other brands, which often offer additional functionality, have become competitively priced.
Thus, he says, many users are choosing ADSL wireless modems in place of Telkom's ISDN and dial-up products, having realised that non-Telkom products are often cheaper or similarly priced.
“This is surprising, as there has been no education about ADSL in this country, and yet people are getting wise and are willing to investigate the market for themselves,” Muller says, adding that the trend has slowly been picking up since 2002.
“Moderate and heavy ADSL users, using Telkom ISDN and dial-up products, are paying monthly bills of between R400 and R500, and are starting to realise that, for the same price, they can get wireless modems and set up wireless networks.”
A similar trend has also emerged in the VOIP handset market, Muller points out, with many South Africans investing in Skype phones. This is also mainly driven by lower prices, as consumers wish to lower their exposure to Telkom tariffs.
Muller says Skype phone sales are beginning to drastically increase in this country, as users seek to communicate with an increasing number of relatives and business associates in countries such as the UK and US.
Telkom was not available for comment.
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