Telkom pricing: We are competitive
Over the years Telkom has become known as a company with high prices and poor service levels – attributes which are widely associated with incumbent operators globally.
Dr Brian Armstrong, Senior Managing Executive for Enterprise Markets at Telkom, admits that there is a perception that Telkom’s data and voice pricing is higher than international norms, but argued that this view is not accurate.
Armstrong backed up his argument with two slides originating from 2009 research done by international research company Tarifica, showing that Telkom is cheaper than most of the countries sampled in the research – including the UK, France and other developed nations.
Armstrong highlighted that both their voice and data offerings are fairly priced when benchmarked against international norms, and that he is confident that they offer their customers a competitive overall value proposition.
When it comes to business data products, Armstrong said that IPLC prices have come down by 90% over the last five years while Diginet pricing decreased by over 50% in real terms over the same period.
MyBroadband questioned Armstrong as to why ADSL usage allowances (caps) did not increase by 90% since international bandwidth prices came down so significantly, and whether the company is therefore profiteering.
Armstrong explained that they are definitely not profiteering. Armstrong said that the best way to battle profiteering in any market is competition, and that they are operating in a competitive ADSL market with great success.
“We win more customers than we lose,” said Armstrong as a way of proving that they are competitively priced and are not profiteering.
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