‘Telkom worried about wireless providers’
This is the view from MyWireless broadband service provider Sentech.
“Sentech has always been confident that market forces will drive all competitors to adjust pricing in order to remain competitive with price leaders. The price reductions announced by Telkom reinforces this view,” Sentech said.
Sentech further said that the current wave of price reductions in the marketplace, initiated by them in February 2007, places great pressure on operators to follow suite (in order to maintain growth), albeit with implications for maintaining margins.
“Sentech is looking at ways to further reduce its costing structure in the near future, especially with regard to international bandwidth in order to reduce pricing,” the parastatal pointed out.
Wireless broadband services currently constitute around 50% of all broadband connections in South Africa, and are showing much faster growth than ADSL.
For low monthly usage limits these services compete favourably with ADSL on price, and the ever increasing HSDPA and iBurst coverage further suggests that this growth is likely to continue.
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