Telkom takes big scissors to high speed broadband prices

In a bit of happy news for those interested in the higher internet speeds offered by VDSL but put off by its pricing, Telkom is going to be cutting prices by up to 37% in the near future to stimulate adoption of superfast broadband, according to a report on TechCentral today.

VDSL stands for “very-high-bit-rate digital subscriber line”and is a network technology that supports internet speeds far higher than those of regular ADSL, which has a download speed limit of 24mbps. While VDSL has been available in South Africa since 2012 in some areas, it’s quite a bit more expensive than regular ADSL connectivity and people haven’t been signing up in significant numbers. TechCentral says that’s likely due to its lack of availability in all areas rather than pricing that has kept people away.

To encourage people to switch, Telkom is cutting the wholesale prices of its 20mbps and 40mbps VDSL offerings, with the 40mbps product getting the biggest cut to its wholesale price: 37%. This is the price paid by Telkom Internet as well as other internet service providers that re-sell Telkom’s VDSL products. The 20mbps package now wholesales for R300 a month (excluding VAT), down from R387, and 40mbps will now cost ISPs R375 per month rather than R595.

Expect these savings to be passed to VDSL customers in the coming months, but those hoping for cuts to 2mbps, 4mbps and 10mbps ADSL packages will be disappointed to hear that Telkom says those prices will remain unchanged.

TechCentral says the cuts come ahead of Telkom’s imminent announcement on pricing details on its Fibre To The Home packages, which Telkom claims will deliver internet speeds of up to 100mbps.

[Source – TechCentral, Image – File]


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