Vodacom ADSL in the pipeline
Vodacom is currently the largest broadband provider in the country, and recently announced that it has signed up 1.138 million 3G/HSDPA subscribers since it launched mobile broadband services in late 2004.
It is well known that Vodacom has been planning to launch an ADSL service as far back as 2007. At the time the plan was to initially act as a reseller of ADSL services, but with the idea of developing an ADSL offering using their own bandwidth in due course.
Vodacom Business has in the meantime developed their own ADSL offerings and it is already recognized in the ADSL business market for their 4 Mbps uncapped ADSL offerings. These offerings compete directly against Internet Solutions’ uncapped business ADSL services.
Vodacom is now planning to bring ADSL services directly to consumers, which will further strengthen the company’s position in the broadband market.
Vodacom CEO Pieter Uys recently said that he is very passionate about broadband, and with growing broadband revenues it is hardly surprising that Vodacom is also looking at a fixed line broadband offering.
Vodacom would not divulge much about their ADSL plans, merely saying that: “The launch of a residential ADSL service would be a logical response to Telkom’s entrance into the mobile business.”
Vodacom would not divulge any time frame and product details about its planned ADSL offering, but it is clear that the cellular provider is preparing for battle when Telkom Mobile is launched.
Telkom CEO Reuben September announced last week that Telkom Mobile will be launched before the end of this year, and will be using the MTN network for roaming purposes.
Telkom has often said that its ability to offer bundled fixed-mobile services will provide the company with a unique value proposition, especially when it comes to broadband.
Vodacom’s planned entrance in the ADSL market may well be in anticipation of Telkom’s bundled offering, giving the cellular giant the ability to also offer subscribers a bundled ADSL-3G/HSPA-Wi-Fi offering.
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