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ADSL Broadband: New Benchmarked Broadband Costs

ADSL South Africa (Broadband South Africa), 25 July 2011

While Telkom has its detractors and especially when it comes to their pricing structure, it is important to be circumspect and delve deeper into the topic of pricing. Global broadband pricing was recently unveiled by the OECD (Organisation for Economic Co-operation and Development). Other issues such as technology trends and penetration rates have been made available in this report as well.

The OECD made comparisons of pricing in other countries. Both prices were researched and this includes a Public Switched Telephone Network (PSTN) to change to DSL and those prices that did not involve PSTN line. South Africa is in the situation where there is mandatory bundling of PSTN lines along with the ADSL services and it is important to take this into account when making comparisons between overseas prices and that of Telkom. South Africa is not affiliated to the OECD, however the Telkom pricing structure was included so that their prices can be compared against the overseas prices.

South African prices of ADSL, which incorporate a PSTN line, do not compare favorably when compared to the OECD averages. Consumers in this country have the highest entry level costs to contend with when it comes to broadband services. Telkom's prices are marginally better at the top end of the scale, however their most costly product only offers 9GB worth of data, whereas, international consumers have uncapped services when they pay similar prices.

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