Low cost broadband
The question has often been asked as to what South Africa should do to increase the uptake of broadband and what the cost for an entry level broadband product should be.
Possible answers can be found when looking at countries like Morocco and India which successfully developed offerings that appeal to a larger portion of the population.
Morocco, which is currently the broadband leader in Africa, has various ADSL offerings, including an unlimited 20 Mbps service. The country’s main ADSL ISP, Menara, has also developed entry level products to serve the needs of parts of the populations who are hard pressed to afford the higher speed offerings.
Menara offers an unlimited 128 Kbps ADSL service for R 108.00 per month and an unlimited 256 Kbps service for R 141.00 per month.
India has an even more affordable offering on the table for cash-strapped citizens. The Indian operator BSNL has a ‘256 Kbps/Up to 2 Mbps’ service with a 1 GB monthly usage limit for R 50.00 per month.
These low cost ADSL services resulted in a significant uptake in both India and Morocco which in turn has boosted their economies and supported their outsourcing industries.
In South Africa the lowest cost ADSL offering from Telkom is a 384 Kbps, 1 GB service with an all-inclusive price tag of R 310.90. This is too expensive for a large part of the population, and a sub-R 150 service may serve this sector far better.
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