10 Mbps Fibre versus 10 Mbps ADSL

ATEC recently upgraded the internet speed available to residents at Kindlewood Estate from 2 Mbps to 10 Mbps on their fibre network.

“At Kindlewood Estate our clients now have 10 Mbps synchronous connections with 1 GB of data for only R197 per month,” explained ATEC CEO Frans Verwoerd.

Verwoerd explained that their affordable access pricing is made possible because of their business model in which the developer pays for and owns the last mile connection. This reduces capital expenditure by ATEC (the telco) which needs to be recuperated, allowing for lower rates.

While ATEC’s fibre access portion is aggressively priced, their data prices ranging between R45 per GB and R60 per GB were criticized by ADSL users who felt it is out of sync with market related rates.

Despite the higher per-GB prices, ATEC’s overall value proposition still looks attractive when compared with Telkom’s 10 Mbps ADSL offerings as the table below shows.

For high usage of 30GB and above, ADSL clearly provides a better value proposition. Verwoerd however said that they are planning to launch an uncapped service later this year at market related pricing, aimed to serving high end subscribers.

ATEC is set to roll out similar fibre networks and internet services at an apartment building in Umhlanga and to various developments in KZN. ATEC is also rolling out their first “non-gated community” triple play FTTH offering in the Clifton (Cape Town) area soon.

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