Telkom To Cut Prices

What would you see as a fair across the board ADSL line rental price cut?

  • Between 10% and 20%

    Votes: 5 2.3%

  • Between 20% and 30%

    Votes: 7 3.2%

  • Between 30% and 40%

    Votes: 7 3.2%

  • Between 40% and 50%

    Votes: 22 10.0%

  • Between 50% and 60%

    Votes: 46 20.9%

  • Between 60% and 70%

    Votes: 25 11.4%

  • Between 70% and 80%

    Votes: 31 14.1%

  • Between 80% and 90%

    Votes: 12 5.5%

  • Between 90% and 100%

    Votes: 60 27.3%

  • Not entirely sure...

    Votes: 5 2.3%
  • Total voters
    220
  • Poll closed .
haha just thought of something:
We can contact Lulu and ask her for Wally's (surname: Beelders) number and say the IT journalist of the year that was awarded by Telkom quoted Wally saying there would be an announcement of a price reduction the end of March and you just wanted to validate Wally's statement to the press.

Lulu's contact details:

Lulu Letlape
Group Executive: Corporate Communication
Tel: 012 311 4301
Fax: 012 323 9424
Mobile: 082 829 5633
 
I think this has to do with the delay with icasa etc. question is what did they wanna anounce. I think in the end Telkom people know that LLU etc will happen, its al about stalling for as long as possible. 1 more month = another huge profit they can use to starve off competition if need be.
 
Telkom analyst day

Telkom's holding an analyst day on Thursday. Wally Beelders will probably be there. I'll ask him -- or someone else, if he's not there -- what's happened with the promised price cuts. I'll post the response to this thread.

Duncan
 
mcleodd said:
Telkom's holding an analyst day on Thursday. Wally Beelders will probably be there. I'll ask him -- or someone else, if he's not there -- what's happened with the promised price cuts. I'll post the response to this thread.

Duncan
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Cool and thanks but why would we believe anything he says now? Wally's got the credibility of a . . . well . . . Telkom employee.
 
This morning's presentations

Reporting back as promised.

Unfortunately, Wally Beelders gave his presentation via videoconference from China so I wasn't able to ask him about the planned price cuts and why they have been delayed beyond the end of March.

There were some interesting developments, though. Among them, very briefly:

* Telkom is deploying fibre to the kerb (to fibre nodes) in an effort to shorten the average length of the local loop. Don't expect fibre into your home but certainly local-loop lengths will be reduced to less than 2km (from an average of 5km now) allowing Telkom to offer 2Mbit/s broadband service fairly universally. Shorter loop lengths mean the company will also be able to offer high-bandwidth services such as IPTV.
* Traffic on Telkom's transport layer will increase 10-fold in the next five years because of strong take-up of broadband services.
* The company will dramatically increase its capex, too. In the next five years it will spend R30bn on improving its network infrastructure. Much of this spending will happen in the next two years. The analysts at the presentation seemed worried about this dramatic increase in capex, which could hurt profit margins. This seems to be the main reason behind the fall in Telkom's share price today (at the moment -- midafternoon -- it's down almost 7% on the session).
* Telkom is still committed to having 1m ADSL lines in place by 2010. That will represent 20% of its installed lines.
* The company is committed to using WiMax as a complementary technology to its fixed-line network. It will deploy WiMax particularly where its fixed-line infrastructure is poorly developed or nonexistent.
* The company is building a Metro Ethernet network to serve its business customers.
* On broadband pricing, the company will reduce ADSL prices further but unfortunately didn't commit to a specific date. The impression I have is that an announcement is still imminent.
* Reuben September, the COO, hinted strongly that Telkom might increase ADSL access speeds without hiking prices. I understood this to mean -- and perhaps my interpretation of this is wrong though I don't think it is -- that if you're on a 512Kbit/s line now you would get 1Mbit/s for no extra cost. September also said broadband bundles (voice and broadband, say) were also planned and would be announced soon.

That probably sums up the most exciting stuff from a broadband perspective that came out of this morning's presentations.

Cheers,
Duncan
 
Thanks Duncan :)

Been waiting with bated breath!

* Reuben September, the COO, hinted strongly that Telkom might increase ADSL access speeds without hiking prices. I understood this to mean -- and perhaps my interpretation of this is wrong though I don't think it is -- that if you're on a 512Kbit/s line now you would get 1Mbit/s for no extra cost. September also said broadband bundles (voice and broadband, say) were also planned and would be announced soon.
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This will be fantastic. I really hope you're right about this one!
 
If I was telkom I would up everybody's access speeds to maximum. That way everyone will hit their caps within days. Telkom will make a fortune on selling more accounts.

...well, more of a fortune...
 
ic said:
...
Unfortunately, Wally Beelders gave his presentation via videoconference from China so I wasn't able to ask him about the planned price cuts and why they have been delayed beyond the end of March.
...
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LOL, was he performing surgery at the same time on a couple of ISDN lines ...
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Naah, he had to go to China to be able to do a videoconference (sorry state of broadband in this country.) :D
 
* Reuben September, the COO, hinted strongly that Telkom might increase ADSL access speeds without hiking prices. I understood this to mean -- and perhaps my interpretation of this is wrong though I don't think it is -- that if you're on a 512Kbit/s line now you would get 1Mbit/s for no extra cost. September also said broadband bundles (voice and broadband, say) were also planned and would be announced soon.
Click to expand...
Last week (or week before) I had a phone call from some market research firm acting on behalf on telkom wanting to know where I was (suburb) - what line I had - and whether I had upgraded at all? Just those 3 questions. Telkom does nothing for nothing - relevant?
 
I really don't get all this obsession with access speed. Don't get me wrong - I'd like my data as fast as possible, but I think we should first have affordable always on internet before they go for a faster connection. We don't need the same prices and faster speeds, you just pay faster then. We need prices to come down.
 
no doubt, 192k seems fine for small basic household use, the major lmiting factor right now is rental costs which is equal to more than isp section of which telkom also gets a share of.(do they get money from IS providers too?). sure cap is bad too, but rental is sucky too.
 
I'm gonna harp on this point forever ----> drop the "line rental" and you'll get 10's of thousands more customers just like that...ISP charges are fine but this line rental, as krycor says, effectively doubles the cost.
 
krycor afaik IS needs to pay money to telkom as well. IS is one of telkoms biggest customers if im not mistaken feel free to correct me if its wrong
 
feo said:
I'm gonna harp on this point forever ----> drop the "line rental" and you'll get 10's of thousands more customers just like that...ISP charges are fine but this line rental, as krycor says, effectively doubles the cost.
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100%! :) That's the main reason I stay on dial-up at the moment, since I refuse (out of principle!) to pay twice for one piece of copper wire...
 
I stay on dial-up at the moment, since I refuse (out of principle!) to get out of bed before 7am... unless it's for a really good reason :p
 
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