Telkom ADSL entry level pricing ??

[Grant]

I know this has been brought up before, but am unable to find the correct thread.

Maybe the TelkomZA guy can provide definitive answers.

The question is this:
Why does Telkom not significantly drop the price of ADSL lines / access to a marginal figure eg. R50pm
Surely that price drop would result in a very very significant number of existing (telephone only) customers taking on the service.
Down the line many customers would probably upgrade their products.

At the moment, Telkom, instead of dropping prices, increases line speeds free of charge for existing customers - this obviously does not increase / grow new customer base.
I am suspecting Telkom's customer base is remaining rather static at the moment and not growing much at all.

Am I wrong & totally missing something ?

 

[deweyzeph]

Am I wrong & totally missing something ?

Yes, you're missing the fact that Telkom does NOT want to increase its ADSL or landline customer base. It's far cheaper for them to run a mobile network. It costs them a fortune to build and maintain landline infrastructure. If they wanted to increase their ADSL customers they would have decreased the ADSL line rental by now and introduced naked ADSL. You kind of get the feeling that they would like to completely get rid of their landline infrastructure.

The figures speak for themselves. Landline numbers are decreasing every year and Telkom has done nothing but encourage people to give up their landlines. So we are in an unfortunate situation where the only ADSL provider in the country is actively discouraging people from buying its product.

 

[froot]

Yes, you're missing the fact that Telkom does NOT want to increase its ADSL or landline customer base. It's far cheaper for them to run a mobile network. It costs them a fortune to build and maintain landline infrastructure. If they wanted to increase their ADSL customers they would have decreased the ADSL line rental by now and introduced naked ADSL. You kind of get the feeling that they would like to completely get rid of their landline infrastructure.

The figures speak for themselves. Landline numbers are decreasing every year and Telkom has done nothing but encourage people to give up their landlines. So we are in an unfortunate situation where the only ADSL provider in the country is actively discouraging people from buying its product.

Yup.

I do know (from family the technical department) Telkom is working on extending the wireless phones and offering it as a viable alternative to the current system. Obviously I have no idea what this is going to do to the ADSL network, seeing as we need that copper (preferably fiber, but copper will do for now).

 

[MickeyD]

AFAIK Telkom will use its mobile network to supplement its fixed line network in high theft areas and the rural areas where they previously deployed radio wireless systems (eg. DECT, CT2, etc). That equipment is obsolete (out of production) and no spares are available. Hence it makes sense to migrate those customers over to its mobile network. It will also use its mobile network to offer converged products in all areas (except those previously mentioned!).

On the diminishing number of fixed lines... personally I don't see a problem with that. The days of being forced to provide anyone with a fixed line regardless of cost and location is over. BTW while the fixed lines are decreasing, ADSL lines are increasing and this is what Telkom should focus on; ways to improve broadband penetration.

 

[ponder]

AFAIK Telkom will use its mobile network to supplement its fixed line network in high theft areas and the rural areas where they previously deployed radio wireless systems (eg. DECT, CT2, etc). That equipment is obsolete (out of production) and no spares are available. Hence it makes sense to migrate those customers over to its mobile network. It will also use its mobile network to offer converged products in all areas (except those previously mentioned!).

On the diminishing number of fixed lines... personally I don't see a problem with that. The days of being forced to provide anyone with a fixed line regardless of cost and location is over. BTW while the fixed lines are decreasing, ADSL lines are increasing and this is what Telkom should focus on; ways to improve broadband penetration.

Who's the head of product development at Telkom? I think I just had a brilliant idea