Telkom drops local ADSL pricing
Telkom has recently announced that it cut the price of local ADSL bandwidth from the previous R 25.55 per GB to R 15.00 per GB. This price is competitive when compared to typical local-only bandwidth pricing like Web Africa’s R 19 per GB, but is still higher than price leaders like Axxess’ R 10 per GB.
Telkom Internet explained in an email to subscribers that due to a regulatory change they are not allowed to cap their users on local data. “In order for TelkomInternet to adhere to this regulatory requirement, we introduced free promotional local data with each package. However, if the promotional free local data on your specific package was exceeded, TelkomInternet customers were charged R25.55 per GB since 1 February 2008.”
“However, as part of our drive to provide greater value to our customers, TelkomInternet is pleased to announce that as from 1 June 2009, we will drop the price per GB to R15.00,” the company said.
TelkomInternet subscribers get a free local data allowance ranging between 10 GB and 40 GB per month depending on their account type. After a subscriber has depleted both their blended bandwidth allowance and their local bandwidth allowance, local bandwidth usage will be charged at R 15.00 per GB.
Telkom said that TelkomInternet dropped the price of local bandwidth “to align with current market trends and also to stimulate demand for local bandwidth usage.”
Telkom was asked whether subscribers can expect any further ADSL price reductions, but as the company is currently in a closed period it could not comment on any forward looking events. There is however speculation that ADSL subscribers may be in line for a price cut this August.
Telkom ADSL pricing discussion
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