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his comes after broadband activist, myadsl.co.za founder Rudolph Muller said on Monday that the effective decrease in ADSL pricing was closer to 12% than the 24% that Telkom claims.
Muller reached this conclusion after factoring in the decline in the ADSL access portion, but including the increases in installation and line rental.
Managing executive for retail marketing at Telkom Steven Hayward said it was not accurate to bundle these together; this was a case of "Chinese maths".
Regarding the third cost element; the actual bandwidth that a customer must buy from a service provider (Telkom or any other), Hayward said there was a lot of competition in this space.
And Telkom had also introduced a wholesale pricing rate of R54 per Gig to the service provider to enable them to offer customers a more friendly, and flexible pricing package.
"We have provided the market with real options," he said, adding that it was unreasonable not to factor considerations like this into a review of overall pricing.
Regarding Telkom's international competitiveness on ADSL pricing, Hayward said it was getting closer to international norms and had come a long way towards achieving that.
This is sad, is he saying rather than reduce the bottom line cost they'd simply add on extra services/speed you may or may not want and claim its cheaper?Hayward used the example of the DSL 192 package, where Telkom had doubled the speed available to these customers, with a small price decrease. Customers would see more moves like this, as well as additional bundled packages, he said.
Hayward said there was a lot of competition in this space.
this was a case of "Chinese maths".
Moederloos said:is this meant to be an insult? Not only is it bordering on a racial slur (damn that - it IS a racial slur), but the Chinese have made HUGE contributions to mathematics, far more than any race of African descent, that is for sure.
Unless Telkom does something to make entry-level ADSL more affordable they will never achieve their target to achieve "significant economies of scale".At this stage it was difficult to benchmark South Africa against other international country examples given that it had not yet reached significant economies of scale, Hayward said.
Although with roughly 150 000 ADSL customers now, it was achieving some economies of scale, this would be much more so once it reached its target of more than a million customers in the next few years.
Managing executive for retail marketing at Telkom Steven Hayward said it was not accurate to bundle these together
except with a twist - this Steve has decided to make some racist slur against Chinese people - I think Chinese people are quite good at mathematics