Telkom's secretive about new product

ADSL South Africa (Broadband South Africa), 14 March 2007

Telkom is secretive about a new product that may introduce a one-price ADSL service as early as May this year.

Telkom’s Group Executive for Corporate Communication, Lulu Letlape, confirmed that Telkom is “…working on such a product, but cannot divulge further details” (One price ADSL service on the cards, MyADSL, 13 March 2007).

What’s mend by a ‘one-price ADSL service’? 

Let’s explain. Currently you have to buy three different components when you decide to get ADSL broadband: Analogue line rental, ADSL access and an ISP account. Internet service providers (ISPs) currently only resell the ISP component of the service, putting them at a severe disadvantage to Telkom’s own ISP, TelkomInternet (One price ADSL service on the cards, MyADSL, 13 March 2007).

This is however about to change if Telkom manages to introduce a ‘one-price ADSL service.’ This service will enable ISPs ‘…to offer their customers a one-price ADSL service, simplifying the current ADSL pricing models and also allowing them to offer their customers better service’ (One price ADSL service on the cards, MyADSL, 13 March 2007). In other words, such a service will enable ISPs to offer an almost one stop ADSL service with all the benefits that comes with such a service.

How is it going to work?

Putting aside all speculation it should be something along these lines:

  • Apply for full ADSL service – You apply for a full ADSL service at your preferred ISP.
  • ISP burdened with installation  – Your preferred ‘…ISP will then interface with Telkom and be burdened with the installation of the service’ (One price ADSL service on the cards, MyADSL, 13 March 2007).

However, don’t worry about how it’s going to work, just know that it will be much better than the system that’s currently in place.

What about standard analogue line rental and physical line installations?

Unfortunately these will still be under the ‘caring hand’ of Telkom.

What will be the main benefits of such a service for me as an ADSL broadband user or subscriber?

The main benefits can be listed as follow:

  • Improved customer service – Less direct contact with Telkom must surely result in improved customer service. This is true when the gap left by less direct contact with Telkom are filled by an ISP that have excellent customer service in mind.
  • Cost savings – ‘After the ADSL line is active it will be billed to the ISP at a discounted rate, a saving which may be passed on to consumers’ (One price ADSL service on the cards, MyADSL, 13 March 2007).
  • ‘One stop ADSL service’ – ISPs will be able to offer their customer an almost one stop ADSL service. Almost because ‘…Telkom will continue to charge the line rental component separately’ (One price ADSL service on the cards, MyADSL, 13 March 2007). It seems that Telkom won’t scrap ‘…the compulsory analogue telephony component which accompanies any ADSL service’ (One price ADSL service on the cards, MyADSL, 13 March 2007).
  • Less confusion – The average Joe like you and me will be less confused when it comes ‘…to order a full ADSL service and how much everything will cost’ (One price ADSL service on the cards, MyADSL, 13 March 2007).
  • Simplified billing procedures – This should for one cut down the number of bills you receive.

Can any step by Telkom in the direction of a ‘one-price ADSL service’ be seen as innovative or groundbreaking?

Not by a far shot because single priced broadband services are already the norm internationally, and Telkom’s refusal to scrap the compulsory telephony component, stands in the way of a truly ‘one-price ADSL service’ or one stop ADSL service.

Telkom will try to convince you that they’re the saviours but don’t be fooled by this.The introduction of such a system in South Africa is long overdue. The only reason Telkom is suddenly interested in introducing such a system is because of the pressure that’s coming from many ISPs and customers alike and because they think it will give their marketing campaign a boost (or encourage you to handover your hard-earned money more willingly). The awakening of the little giant, Neotel, might also be a reason why they suddenly pretend to be nice.

ADSL South Africa (Broadband South Africa) welcomes any efforts to introduce a ‘one-price ADSL service’ in South Africa.

adslsa