Is Telkom losing the broadband war?

ADSL South Africa (Broadband South Africa), 29 June 2008

It has become increasingly clear that Telkom is losing the broadband war in South Africa. Telkom’s broadband market share has tumbled from 83% in 2004 to 41% currently.

Telkom’s competitors are growing by the day in terms of strength and numbers. This is why it’s difficult at best to grasp the wisdom of Telkom’s failure to lower the cost of broadband in South Africa by lowering their broadband prices. On August the 1st this year, Telkom will instead raise its prices with 2.4% on average. The cost of basic telephone line rental and DSL installation charges will increase with 11%. This does not sit well with Internet users because it will make it even more expensive to subscribe to DSL or ADSL products.

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