Telkom ADSL Pricing

eabeukes

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Feb 25, 2005
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I'm on holiday staying with my parents in Nelspruit, and live in London for the most part. I've been trying to catch up with DSL developments in SA as I am a reseller and support provider in the UK. I have been looking (via the delightfull 56k lines....) at Telkoms price structure. As far as I can make out, to get DSL. I would need:
1x Telkom line (rental) = R70 p/m
1x Telkom DSL Line (rental) = R680 p/m
1x DSL account = R250+

For a total of R900+ per month.

Thats disgusting. :eek:

When I package DSL to home users, it works out to

1x line = £11.50 p/m
1x 256k (unlimited) connection = £17 p/m

Total = £28.50 p/m (R300 odd for those without calculators)

Now I understand Telkom has issues to deal with (exchanges from the 50's etc) but I don't see how they can justify the price of DSL. What does anyone need to rent a 'special' dsl line for?! Your line doesn't change at all - all Telkom does is stick the plug at the exchange into a newer DSLAM, which isn;t THAT expensive. And the fact that they charge R2067 for an Alcatel modem that costs $7 to manufacture is sick.

The whole point of DSL is not for p2p, or for downloading large amounts of crap (there is a minority who hog bandwidth by doing so, but its very easy to track them down and fine them - I know, I do it all the time). The point is to communicate. This is where Telkom gets it very wrong. With new tech coming out (WIMAX in particular - has very +++'ve points for Africa) they need to be very careful where they take their pricing. I've read quite a bit on Telkom's 'expensive' international bandwidth. Rubbish. They have links with a number of global players and have spare capacity available in heaps. All they seem to be doing is milking the SA market before consumers wake up, and the SNO comes in.

If anyone can shed some light on the line rental issues above, feel free to do so. I'm sure there are many people out here who'd love to know.

Andre
 
Telkom justifies the R680pm for "Bandwidth costs", and probably also attempt to justify it as paying for the port on the DSLAM (which we all know is rubbish because those ports aren't that expensive).

The interesting thing though is that by citing bandwidth costs they are basically telling us that your line rental is subsidizing their network bandwidth, however will also then turn around and tell you that ADSL is merely an "access medium" (ie. has nothing to do with bandwidth). Such cross-subsidization is illegal and ICASA should be looking at this, but doesn't.

For example, I'm on UUNet now. Telkom charges R680 for bandwidth, but now UUNet gets none of that and I'm not using any Telkom bandwidth, so UUNet has to charge me for the bandwidth I use on their network, Telkom charges me for bandwidth I don't use (but I have to pay for just to have the line), and UUNet then has to pay Telkom for the bandwidth I use (as they purchase the lines from Telkom), so Telkom is getting two bandwidth revenue streams, when it should only be getting one.

This is completely and utterly wrong.
 
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