ADSL speed increases and ISP pricing

Telkom announced last week that it will upgrade its 384kbps and 1Mbps ADSL services to 1Mbps and 2Mbps respectively. The company is also planning to increase the price of its entry level (Fast DSL service).

While the ADSL speed increases were expected, many Internet Service Providers (ISPs) were surprised by Telkom’s plans to increase the price of its DSL384 service.

ISPs now have to decide whether they will absorb the entry level DSL price increase, and whether they will bump up their 384kbps and 1Mbps uncapped ADSL users to 1Mbps and 2Mbps respectively (and at what cost).

MWEB ISP CEO Derek Hershaw said that their 384Kbps data-only uncapped ADSL customers were migrated to a 1Mbps product as of 1 June. “At R199-00 per month this product is cheaper than our old 384Kbps product (which was R219-00 per month),” said Hershaw.

MWEB is also planning to introduce a new 2Mbps uncapped ADSL data-only product. “The price of that product is still to be confirmed but it will be more than the current 1Mbps pricing,” said Hershaw.

Rupert Bryant

Web Africa COO Rupert Bryant said that in preparation of the ADSL speed increases they have launched a very competitive 1Mbps uncapped data product at R189 per month.

“For existing 384kbps uncapped customers this means only an extra R10 per month and they receive 3 times the speed. We’ve seen great uptake on the product already,” said Bryant.

Web Africa’s 1Mbps bundled uncapped service will cost R339 per month after the speed upgrades – again an increase of R10 per month.

When it comes to the 1Mbps to 2Mbps upgrades, Web Africa is also ready. “It’s with pleasure that I officially announce our new 2Mbps uncapped data package at R379 per month. As soon as the 2Mbps ADSL lines are available this will be launched,” said Bryant.

“The new 2Mbps ADSL line included will cost an additional R250, which is still below Telkom standard rates.”

“The line will automatically be upgraded from 1Mbps to 2Mbps, at no cost. To take advantage of the new 2Mbps speed, an upgrade option of R190 per month for the uncapped data account will be available for existing 1Mbps data customers,” said Bryant.

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