Over the past decade, the price of broadband in South Africa has plummeted, with more affordable and faster ADSL services and mobile data products.
While South Africa still lags behind global standards on both the speed and cost of broadband, progress has been made on driving down prices and offering more value to consumers.
The price of ADSL and mobile data prices has reduced by over 90% during the last decade, while the effective cost per Mbps showed a similar price decrease.
Telkom ADSL access prices
- In 2003 ADSL subscribers paid R680 per month for a 512kbps ADSL line, translating into R1,360 per Mbps.
- In 2013 Telkom’s fastest broadband product is its 40Mbps VDSL service priced at R795 per month. This translates into R19.88 per Mbps.
Telkom ADSL data prices
- In 2003 Telkom’s 3GB data accounts cost R219 per month, which means consumers paid R73 per GB.
- In October 2013 consumers can get 40GB of ADSL data from Telkom for R239 – hence R5.98 per GB.
Telkom line rental
- In 2003 Telkom charged R81.90 for an analogue line (which is needed to get an ADSL service).
- In 2013 the price for line rental increased to R157.
Vodacom mobile broadband
- When Vodacom launched its first 3G products in December 2004 the company charged R1,198 for a 2GB package. This is R599 per GB.
- In October 2013 South African consumers can buy 2GB of mobile data for R99 per month – therefore R49.50 per GB.
Vodacom “out of bundle” price
- When Vodacom launched its first mobile broadband service in December 2004 it charged R2 per MB when no bundle was purchased.
- In October 2013 the situation has not changed, and users still pay R2 per MB if no data bundle is bought.
Broadband prices in South Africa: 2003 to 2013
The following table provides an overview of broadband prices in South Africa from 2003 to 2013. It should be noted that the most common products were selected, which are not necessarily the cheapest.
|ADSL data per GB||R73||R6||-92%|
|ADSL access – price per Mbps||R1,360||R20||-99%|
|Mobile data per GB (from Dec 2004)||R599||R50||-92%|
|Telkom line rental||R82||R157||+92%|
|Mobile data without a data bundle||R2||R2||0%|