Many of South Africa’s largest Internet Service Providers (ISPs) are set to reveal new prices for their ADSL products following Telkom’s ADSL speed upgrades.
Telkom started to upgrade existing ADSL customers to higher line speeds on Monday 11 November 2013.
1Mbps, 2Mbps, and 4Mbps ADSL line speeds are increased to 2Mbps, 4Mbps, and 10Mbps respectively.
These line speed upgrades are performed free of charge, which means that ADSL subscribers will benefit from higher access speeds without price increases.
However, the cost of uncapped ADSL data increases with an increase in speed. This may result in an increase in bundled ADSL products (which include an uncapped ISP account and an ADSL line).
Uncertainty about new ADSL access prices
Many people buy their ADSL line (ADSL access) from Telkom. While these subscribers’ line speeds will be increased for free, there is uncertainty about the new 4Mbps and 10Mbps ADSL access prices.
Telkom said that in future, the ‘Up to 4 096/10 240 kbps’ product offering will be split into two separate offerings i.e. ‘Up to 4 096 kbps’ and ‘Up to 10 240 kbps’.
Many exchanges are not 10Mbps capable, which should mean that some Fastest DSL (up to 4/10 Mbps) subscribers may be migrated to the cheaper Faster DSL (now up to 4Mbps). The same may happen with bundled ADSL products.
Telkom was asked for comment on this issue, but the company did not provide feedback by the time of publication.
ADSL ISPs to release new information
Many ADSL ISPs are set to release new information about their planned ADSL products and pricing following Telkom’s ADSL speed upgrades.
MWEB ISP CEO Derek Hershaw said that they will be releasing information about the ADSL speed upgrades and related pricing early this week.
Afrihost CEO Gian Visser said that they will definitely be adjusting their ADSL line pricing – both for new clients and for clients that have bundled line and data with them.
“We are finalising all of these changes and they will be ready later this month,” said Visser.
Axxess marketing director Franco Barbalich said that they are looking at reducing the prices on their bundled services once the Telkom line changes have been made.