Telkom’s ADSL Pricing Hampering South Africa’s Internet Growth
(PRWEB) January 5, 2005
2004 witnessed a global reduction in the cost of broadband Internet services. This reduction was partly due to more affordable DSL equipment and the lower cost of bandwidth. Apart from these two factors the stronger rand further placed Telkom in a perfect position to pass these savings on to the consumer and fuel the growth of broadband Internet in South Africa. These savings unfortunately did not result in the lowering of ADSL costs in South Africa, and ADSL users must still fork out up to 15 times more for their broadband connection than their European, US or Asian counterparts.
It is quite interesting to note that while broadband costs worldwide drastically decreased in 2004, Telkom in fact increased the price of ADSL at the beginning of last year. This is particularly regrettable since its ADSL service is already far more expensive than similar services worldwide. TelkomÂs pricing policy means that South Africa is falling further behind the rest of the world regarding Internet connectivity. Even countries like Mauritius and Oman provide cheaper and superior ADSL offerings than South Africa.
MyADSL feels strongly that the government should play a more active role in reducing the cost of broadband Internet in South Africa. A reduction in cost will fuel the growth of broadband in South Africa and ensure sustained growth in the IT sector. Without such a reduction it will be very difficult for SMEÂs in the IT industry to compete favorably with their international counterparts. It will further result in ADSL remaining a service that is only accessible to a small, affluent part of our population. This will regrettably further stretch the already large digital divide.
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