Cost of ADSL expected to fall below R29 per GB

ADSL South Africa (Broadband South Africa), 10 November 2009

ADSL users can expect to see the cost of ADSL Broadband fall below R29 per GB within three years. This is the opinion of Afrihost which has launched a R29 per GB ADSL Broadband offering earlier this year.

Regulatory changes and competitive moves… 

Afrihost’s opinion that the cost of ADSL Broadband will drop below R29 per GB within 3 years, is mainly based on the expectation that regulatory changes and competitive moves in the ADSL Broadband market will help to push down the cost of ADSL Broadband in  South Africa.  

The above must come as great news to ADSL users given the fact that we’ve been under siege for several years now, hampered and restrained by the high cost of ADSL Broadband in South Africa. Funny enough, this is mainly due to the inability of the relevant authorities, including ICASA, to enforce ADSL regulations and also due to a lack of effective competition in the ADSL Broadband market due to anti-competitive practices by Telkom. Telkom is pretty much still in control over the ADSL Broadband market in South Africa, because the incumbent has control over the local loop for one, but things are starting to take a turn for the better. There was a visible increase in competition in recent months, and believe it or not, but it seems like the Competition Commission under the Zuma led administration wants to level the telecoms playing field though various regulatory changes.  

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