Telkom ADSL price increase warning

No mention of the forced phone line rental yearly price increases each and every year. Individually these cost don't seem much but if you add the phone line rental, adsl rental & ISP cost then 3G data deal specials from 8T & CellC are multiple times cheaper despite being superior in speed and mobility.

In SA ADSL might end up being a niche service like ISDN is.
 
twicode said:
No mention of the forced phone line rental yearly price increases each and every year. Individually these cost don't seem much but if you add the phone line rental, adsl rental & ISP cost then 3G data deal specials from 8T & CellC are multiple times cheaper despite being superior in speed and mobility.

In SA ADSL might end up being a niche service like ISDN is.
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Actually they mention the phone line increase a number of times...
 
Scooby_Doo said:
Actually they mention the phone line increase a number of times...
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It doesn't show in the two graphs that show the price staying steady between 2007 to 2011.

Yes the article does mention voice line rental twice but only in the context as a warning to learn from history that happened with fixed line subscribers decline caused by price increases and not that it is directly related to ADSL subscriber number decline with force voice line rental that is a big problem.

Telkom has steadily been increasing the price of its analogue lines over the last decade, which may have been partly to blame for the continued decline in the company’s fixed line subscriber numbers.

World Wide Worx argues that the same will happen with ADSL subscriber numbers if Telkom continues to increase ADSL rates.

“The ADSL price increase is strategically dangerous for Telkom. Being the first increase in nine years of ADSL provision, it may well signal a trend of ongoing price increases, much in the way that the cost of a normal fixed line phone rental increases every year,” the report stated.
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With forced voice line rental prices have increased every year excluding the years we had ADSL line rental reductions.
 
I don't have an issue with the line prices increasing due to inflation.

I do however have an issue with paying these high prices for the "slow speeds" when comparing it with the 1st world countries.
There they usually get everything (TV, phone & ADSL) bundled and at a fixed price often!

Perhaps Telkom should adjust their line rental cost model to be relative to your area, because I'm pretty sure densely populated areas there would be many more DSLAM's and shorter distance copper wires, which should result in lower tariffs?!
 
Telkom, Eksdom, WTF? Try 16% per year for 5 years guys!
 
The only reason I dont have ADSL is becoz of Line Rental, I simply can't afford it.
 
Don't worry, you don't miss much. Unless you are a computer hog and spend hours online every day. But if you don't use more then 1gig a day (which is quite a lot), 8ta or CellC is the way to go. Slow, expensive and frequent disconnections is Telkoms trademark WTF.
 
Authentic?

rpm said:
ADSL price increase warning

Internet Access in South Africa 2012 report warns that ADSL price increases will be bad news for Telkom
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The graphs, in this article, detailing adsl and costs for 2013/14/15. Is this a forecast? It is misleading not to write Forecast against these years, and present them as fact, when the fact has not happened.
 
The decision to go with Telkom ADSL use to be made if you download above 3-5GB per month.
From this year it is above 20-30Gb per month. An 8Ta 10Gb contract per month without modem cost R199 per month or with modem R215 pm. That is about a half to a 3rd of the total cost of entry level uncapped if you include forced voice line rental or not with which you get the added benefit of mobility and 7.2Mbps speed.

So I would think the viability of ADSL for the year 2013 should be questioned if Telkom themselves with its mobile arm undercuts ADSL this year. If 8TA provides 10GB per month for the same price it costs voice line rental alone then surely next year ADSL numbers will start to decline next year. I can only conclude Telkom wants to make ADSL a niche service like ISDN.

If ADSL numbers drop significantly which based on the above will be the case next year then TElkom will keep on increasing prices bringing economics of scale as an excuse.
The future of ADSL does not look good.
 
So... according to this there will be a "transition period" where we'll suffer regarding internet access and pricing...
 
They want to increase the price, yet I still have ADSL issues every 2 months...currently down for almost a week. And do I get refunded for the down time? No...

We need more competition on fixed lines.
 
Method said:
They want to increase the price, yet I still have ADSL issues every 2 months...currently down for almost a week. And do I get refunded for the down time? No...

We need more competition on fixed lines.
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If you log a fault and your down time is recorded then you do get refunded.
 
Price increases are part of Telkom's strategy of slowly getting rid of all their fixed line subscribers. That can be the only explanation of why they are purposely driving customers away with high prices. Their strategy seems to be that eventually they will completely give up on fixed-line infrastructure and move 100% to mobile broadband.
 
You just gotta love telkom.

The only plan B they have is to charge more. ADSL subscribers dwindling ? NO PROBLEM, hike prices. In the last 5 years ADSL has only become slower and more unstable.

Not to mention the fact that wireless access is now considerably faster than telkom's fastest residential fixed line offering. Laughable.
 
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Telkom's problem is the high number of staff, I/3 of their cost goes to employee cost and that cost keeps on going every year, government as a major shareholder won't allow Telkom to retrench at least 1/3 (around 7 000) of their employees.

if (I say if) Telkom can be allowed to remove dead wood among it's stuff it can be leaner and more efficient to run which in turn can translate into price cuts on it's products
 
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