Telkom has announced that its home line rental prices will increase from R166.50 per month to R189 per month from 1 May 2015. This will result in a higher total ADSL bill for broadband users.
This is the second time in a year ADSL subscribers have been hit with a price increase. On 1 August 2014 residential line rental prices increased from R157 to R166.50 per month.
Many Internet Service Providers argue that ADSL prices should come down to stimulate demand and increase penetration rates.
MWEB ISP CEO Derek Hershaw explained that broadband is a volumes game, which means the more users you have on the ADSL network the better it is in terms of efficiencies and economies of scale.
“The ADSL market growth has been pedestrian for a few years now – the ADSL penetration rate versus the number of homes that have Telkom lines is way too low,” said Hershaw.
Hershaw said it is high time for Telkom to seriously consider naked ADSL – where a user can buy an ADSL line without paying for analogue line rental – to stimulate growth.
Cybersmart CEO Laurie Fialkov agreed, saying users and ISPs should not be forced to purchase a phone line with their ADSL service.
ADSL prices from 1 May 2015
The latest line rental price increase means ADSL users will pay R22.50 more per month for their ADSL service from 1 May 2015.
Consumers who get their ADSL line from their ISP will also be hit with the increase, because line rental is payable to Telkom and not the ISP.
The following table provides an overview of the new rates.
|New Telkom ADSL bill from 1 May 2015|
|—||Old price||New price|
|Service||DSL access||Old line rental||Old total price||New line rental||New total price|
|Fast ADSL 2Mbps||R165.00||R166.50||R331.50||R189.00||R354.00|
|Faster ADSL 4Mbps||R299.00||R166.50||R465.50||R189.00||R488.00|
|Fastest ADSL 10Mbps||R425.00||R166.50||R591.50||R189.00||R614.00|
|Elite 20Mbps VDSL||R499.00||R166.50||R665.50||R189.00||R688.00|
|Elite Plus 40Mbps VDSL||R599.00||R166.50||R765.50||R189.00||R788.00|