Telkom has reduced the prices of its uncapped fixed-line broadband packages, with the aim of migrating its subscriber base away from capped services.
“We have been listening to our customers very closely,” said Telkom Consumer CEO Attila Vitai.
Vitai said they are working hard to understand the needs of their subscribers. In this case, what subscribers want has come through loud and clear – unlimited data.
“Data has fallen at Telkom,” said Vitai.
Rewind six years, and Telkom was among the Internet service providers which said uncapped ADSL packages, like those launched by MWEB, were unsustainable in South Africa.
Then, out of the blue, the company launched its first uncapped offerings at rAge 2011.
Telkom said uncapped ADSL had become sustainable and that not being first to market with uncapped services had allowed it to create a high-quality offering that was profitable and sustainable.
While MWEB has encouraged subscribers to migrate to its uncapped packages since 2010, Telkom’s capped and uncapped services happily coexisted since September 2011.
Now, Telkom has changed its tune, saying that there is a strong drive in the company to move in an uncapped direction.
The big uncapped move
Erna Korff, the head of Telkom’s consumer and mobile product house, said they have noticed a big change in consumer needs and behaviour – which motivated the change.
Korff said the change in their wholesale model a few years ago has also enabled Telkom’s ISP division to build new kinds of uncapped packages.
Several years ago, before the competition authorities ordered a functional separation of Telkom’s wholesale and retail divisions, Telkom’s ISP moved away from a usage-based wholesale billing model to IP Connect (IPC).
IPC is the wholesale product that all ADSL service providers in South must use. IPC now resides in Openserve, Telkom’s wholesale and networks division.
“This has given us more flexibility in terms of packaging and pricing,” said Korff.