2010 has been a rollercoaster ride for both consumers and Internet Service Providers (ISPs) in the ADSL space, with prices plummeting and numerous service providers slugging it out for market share.
MWEB’s affordable uncapped offerings stole the limelight, but capped ADSL prices from ISPs like Afrihost, Openweb and Axxess with prices from as low as R9.50 per GB also made ADSL data cheaper for users.
Many of the more affordable per-GB accounts are provided to service providers by Internet Solutions (IS), and to date ISPs which exclusively use Telkom/SAIX as a wholesale provider could not effectively compete against their counterparts using IS. This is however about to change.
SAIX Lite service launched
SAIX (Telkom Wholesale) has recently unveiled their SAIX Lite ADSL wholesale offering, complementing its existing shaped, unshaped and local data services.
Per gigabyte wholesale pricing of the new SAIX Lite offering is around half the wholesale price of Telkom’s standard shaped service.
The new, cheaper SAIX Lite service will make it possible for ISPs relying on Telkom Wholesale for their ADSL services to offer new ADSL accounts with far lower ADSL prices.
Retail offerings using the new SAIX Lite service is expected to start surfacing soon, and per-GB pricing of well below R30/GB or even R20/GB in some cases may emerge.
The performance of the imminent SAIX Lite retail services will likely determine their success. The accounts have been described as ‘cheap and nasty’, but this could be competitors rubbishing the new comer. The exact details and performance of these accounts are still untested so only time will tell if the SAIX Lite accounts are able to meet market expectations.
It is speculated that the new SAIX Lite traffic will be de-prioritized during periods where the ADSL network is running at high capacity, but no feedback was received from Telkom about its new wholesale service by the time of publication.
SAIX Lite and ADSL pricing << Do you think ADSL prices will drop further?