Short sweet and Simple:
One must realize that Telkom is a monoply. They own the landing rights for the so called "Sat3" cable in South Africa. No other company or Parastatal has access to this directly. They must go through Telkom.
Secondly Telkom uses underhand, anti-competitive and non-consumer friendly methods. They use methods of propganda to influence the masses who do not understand the telecoms environment. In the last 2 years Telkom has not released a truthful statement. Anything and everything Telkom say is a lie. The reason I say this is because there is an abundance of evidence that prooves them wrong. Telkom state that the cost of internet connections has decreased by 70%. It may have decreased by 70% for their bottom line. But to the consumers it has risen 600% from 1 November 2005. It is easy for Telkom to say that the Internet Connections has decreased by 70% in cost. It does not say that this cost saving has filtered through to the customer. Yet Telkom ambigously allow everyone to assume that this is the case, which in fact is not true.
You probally wondering "Why hasn't anyone sed anything???". Well in South Africa there are a number of Governing bodies which monitor this type of "anti-competitive" behaviour by the Telecom Monoply.
1) ICASA (Independent Communications Authority of South Africa)
2) Competition Commision
3) ISPA (Internet Service Providers Association
4) Department Of Communication
To Date none of these Governing bodies have done anything to rectify the situation. Reason being is that the South African Government owns a 37% Stake in the Telecoms Monoply Telkom. Therefore by increasing competition in the market they are affecting the bottom line of Telkom. It turns into a Conflict of Interest. Another contributing factor is corruption. 1 Official from ICASA was caught red handed and dismissed.
There are activist groups out there (Evidence can be found here):
www.myadsl.co.za
www.hellkom.co.za
To Date Telkom and Government officials are not consumer centric. They are only worried about profits and not service. Without international pressure the Digital Divide will get bigger. Pricing will stay the same. Inevitably there will be no such thing as broadband, or broadband penetration.