Telkom price cuts come into effect

"We reduce our prices in line with our overall drive to defend and grow our revenues. The price reductions will not only ensure more savings for our existing customers but will also attract new entrants to the broadband experience.

"While the net impact of the proposed prices will vary among customers the overall effect will be a reduction in the cost of telecommunications in South Africa," said Reuben September, acting CEO of Telkom.
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Translation: While waiting for the money-counter to cool down after counting our profits, we noticed that everybody else was actually offering cheaper packages than we were, so we thought we'd lower prices a bit and blow some more smoke at you plebs down there.
 
hey thanks telkom, with these savings i now can afford a few chappies! :sick:
 
Telkom (TKG) said that its customers are set to benefit from an overall price reduction of 1.2% in August.
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Hogwash, is that overall price reduction purely an average, or is it actually a weighted average where a price increase on an item which has 10 million people has a larger impact on the overall price than a price reduction on an item with 500,000 people. I believe it is a pure average, as Telkom would not want to reveal the fact that they are actually increasing their prices to the majority.

For example: (If somebody provides me with the exact number of users, the price reduction per service, and the rest I will calculate the true price increase from Telkom)

Telkom's world:
We reduce the price on ADSL with 14%.
We increase the price of phone line rental with 12%
Our new prices are 2% lower than our old prices!

Reality:
We reduce ADSL by 14% which has 500,000 users.
We increase phone line rental by 12% which has 10,000,000 users
-0.14 * (500,000/10,500,000) + 0.12 * (10,000,000/10,500,000) = -0.0067 + 0.0114 = 0.0047% INCREASE
Yeah that doesn't look like a reduction to me Telkom.
 
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on 512k i save R36 (R362 less R326)

But wait, line rental went up (R99.92 to R111.9) i pay R11.98 extra

So my R36 savings less this extra bit of R11.98 gives me a whopping R24 saving!!! oh goody, i'm jumping for joy :(

guess their idea works, i'll be upgrading to 4mb in a month or two as tahts only about R80 extra. However, Neotels september launch has to sway me to give Telkom a middle finger!
 
Smoke and mirrors people. If we had proper competition, Telkom's prices would be dropping like flies!
 
"The price reductions will not only ensure more savings for our existing customers but will also attract new entrants to the broadband experience.
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They mean "The price reductions will not only ensure we made more money by screwing non DSL subscribers, but will also attract new entrants to the broadband experience and screw them as well"
 
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