ADSL Broadband: Why is ADSL so expensive in South Africa?

ADSL South Africa (Broadband South Africa), 6 March 2011

It is a known fact that Internet Connectivity in SA is considered to be more expensive than what is available overseas. Prices in other countries are relatively cheaper than what is available in South Africa; however ADSL South Africa (Broadband South Africa) gives the Average Joes access to competitive rates through our One Stop Broadband Request Service. Telkom last reduced their rates a few years ago and it does not look like a further rate cut is imminent.

The obvious question that many people have is why are the broadband rates not lower as was promised when the SEACOM cable was installed? According to broadband news via Telkom officials, the pricing of DSL384 is very close to cost and Telkom are unable to reduce this any further as there is no margin to work with. Some people may question the veracity of such a statement, however two other executives at the company share this sentiment and have expressed this publicly via the news.

This still does not explain how other countries are able to offer an all inclusive 4 Mbps service at a rate that is lower than what Telkom offers. It must be noted that Telkom charge more for ADSL and line rental than other countries charge for the 4 Mbps service. Many local clients are becoming quite frustrated about this.

<< Previous    [1]  2  3    Next >>