Mobile Broadband: 8ta’s Competitive Edge

ADSL South Africa (Broadband South Africa), 3 July 2011

8ta has announced news that will make life very difficult for other mobile service providers in South Africa. 8ta, which belongs to Telkom, has announced a very aggressive pricing structure that will certainly keep the likes of Vodacom, MTN and Cell C on their toes. The broadband rates are something that will attract many customers away from the other service providers.

Analysts in the industry are impressed as they feel that Telkom is giving its rivals something to think about. One such offer is the 24-month contract based offer that gives customers access to 10GB of data for less than R200 per month. This offering is bound to attract many clients to 8ta. Customers can access an additional 10GB later in the evening for only R100 extra.

Dennis Smit, who is the Managing Director of BMI-TechKnowledge is confident that Telkom has crunched the numbers correctly, despite the fact that he is unsure that this pricing structure is sustainable. Smit believes that Telkom have been forced to do this in light of the service providers shoddy yearly financial results. 

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