New ADSL prices kick in
During its results presentation on the 13th of June, Telkom announced an average ADSL price reduction of 18.2% and an entry level – up to 384 Kbps Access – price cut of 38%, planned for August 1 this year.
From today onwards the access price for DSL 384 will be R 152-00, down 38% from the usual R 245-00. The DSL 512 access price decreases from R 362-00 to R 326-00 while the 4 Mbps price is cut from R 516-00 to R 413-00.
Telkom’s Do Broadband product prices, which include both the ADSL access and ISP usage charges, will also be reduced.
Their DSL 384 service with a 1 GB of monthly usage allowance now costs R 199-00, a 29% reduction from the previous R 279-00. The same service with a 2 GB usage allowance will cost R 258-00, also a 29% reduction from the current price of R 364-00.
The price of Telkom’s Do Broadband 4 Mbps ADSL service with a 3 GB monthly allowance is reduced from R 675-00 to R 554-00, an 18% reduction.
Telkom’s customers using a Closer package will also benefit from the price cuts. Telkom’s Closer Plan 4, which previously cost R 499-00 per month, now costs R 429-00 per month. This plan includes DSL 384 access with the standard closer benefits.
Telkom’s Closer Plan 5, which includes DSL 4 Mbps access in addition to all the Closer 3 benefits, is reduced from R 699-00 to R 651-00.
Bad news for some consumers
While the ADSL price reductions were widely welcomed, there are other prices that will increase from today.
Analogue line rental prices increase from R 99-92 to R 111-90. This means that there is an effective saving of only around 15% on the combined ADSL Access and Line Rental charges.
The price for various other services like ISDN, ADSL installation charges and callmore-per-minute rates are also increasing today.
ISPs taking Telkom on
Various local ISPs are making the most of Telkom’s DSL access price reductions, and have already launched their new pricing structures.
MWEB, one of the first large ISPs to introduce a special offer which takes advantage of the new pricing, are retailing their ‘all inclusive ADSL service up to 384K’ for R179-00 per month.
This price is applicable for the first six months and – like Telkom’s offer – includes the DSL 384 access charge and a 1 GB monthly usage allowance. The price thereafter is R 219-00 per month.
Cybersmart is charging R 169-00 for the same service and leads the way in the pricing department, followed by Web Africa’s R 174-00, SAINET’s R 189-00 and XDSL’s R 193-00.
In the combined price 4 Mbps – 3 GB department, SAINET leads the way with a price of R 509-00, followed by Cybersmart’s R 524-00, Telkom’s R 554-00 and WebAfrica’s R 579-00.
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