Telkom offer angers rivals

25 Apr 2007

Telkom South Africa’s new low-cost ADSL package has provoked angry responses from alternative providers who say it will be impossible for them to compete. Telkom is providing a 384kbps connection with 1GB of data transfer for ZAR279 (USD39.42) a month. The service marks the first time the telco has offered a fixed single-price package for ADSL; previously, customers paid an ADSL service fee and then usage was charged separately. Telkom’s competitors claim, however, that it would cost them around ZAR265 in wholesale fees to access a similar service, leaving them little room for their own costs. Local news portal Fin24 quotes Rudolph Muller, founder of online broadband consumer forum MyADSL, who says: ‘From the feedback I’ve had from ISPs so far, it’s clear that they are not very happy.’

South Africa, Telkom South Africa