Telkom ADSL speed upgrades, VDSL, video on demand

Shortly after announcing its consumer uncapped ADSL product on Friday 30 September 2011, Telkom entered what is known as a “closed period.”

In the weeks preceding the announcement of their financial results Telkom typically declines to answer questions about their future plans or ongoing trials, citing JSE closed period rules.

With the announcement of its interim results on 21 November 2011, Telkom emerged from its closed period, and this week provided answers to some of the questions we’ve been burning to ask since the start of October.

Our questions and Telkom’s answers are reproduced below, with our questions in bold.

Is it accurate to say that one of the reasons for launching uncapped is to pave the way for a video-on-demand (VOD) service that Telkom plans to bring to market? If so, when?

Telkom’s ISP, TelkomInternet, has consistently reduced bandwidth pricing, enhanced package options and launched new options to improve the broadband Internet value proposition to customers.

TelkomInternet has recently introduced uncapped bandwidth services and higher bandwidth package options. Apart from reducing prices over time we have provided additional value to our broadband customers by introducing content and services like Encyclopedia Britannica, Do Chat and messaging. Also, as mentioned in our recent Interim Results release, we will continue to investigate targeted double and triple play offerings with on-demand media-rich content and converged services.

Will Telkom upgrade the speeds of existing 384kbps customers in support of this plan (or for another reason)? Are Telkom’s plans for VOD more for higher speed lines and accounts, such as VDSL [Very-high-bit-rate digital subscriber line]?

Since the launch of DSL in 2002, Telkom has decreased ADSL prices by more than 60% and, at the same time, significantly increased throughput speeds. The 192kbps service was increased to 384kbps, 4Mbps service was increased to 10Mbps subject to network conditions and recently the 512kbps service was increased to 1024kbps, without increasing the cost to customers. Planned enhancements to Telkom’s network will enable the provisioning of improved broadband services.

Will your other line options also receive upgrades, or will you introduce new speed increments?

Telkom consistently investigates ways in which its service offerings can be enhanced in a manner that lends itself towards improving the broadband experience of our customers.

Will you allow DStv BoxOffice (once the online version is launched) to stream to TelkomInternet users? Will you allow non-TelkomInternet users to stream from your VOD service?

Streaming content adds value to broadband services and Telkom is open to explore opportunities with any content provider towards creating greater value for customers.

Perhaps related to the above: Steven White mentioned (according to TechCentral) that Telkom can now use DPI [deep packet inspection] to premium-rate or zero-rate certain traffic. What kind of traffic would Telkom premium rate and what would it zero rate?

These decisions can only be taken once specific commercial partnerships are concluded with content providers.

Do you have timelines on converged offers that allow you to use one account to access the Internet from either 8ta or ADSL (or both at the same time)?

Telkom is developing a number of fixed mobile offerings. Initially these are in a bundled format moving towards true convergence. In the initial convergence the mobile data and fixed line data will first remain separate.

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