ADSL price cuts and subscriber growth
The recent price reduction in ADSL data products, which followed Telkom’s 30% price cuts in wholesale ADSL rates, definitely boosted subscriber growth. This is according to Rupert Bryant, Web Africa’s Chief Operating Officer.
Bryant said that their growth rates have been fairly constant this year, but that “price reductions on the data side have definitely boosted our growth slightly.”
Axxess marketing director, Franco Barbalich also indicated that lower prices meant growing their subscriber base. “Growth in both uncapped and per GB products have remained strong. The 1Mbps and 10Mbps uncapped products have seen the most growth, due to competitive pricing,” he said.
“Axxess has made a concerted effort to be first to market with new products, and to create a fun factor with our prospective and existing clients. This has really been a great strategy and we continue to experience expected growth rates,” said Barbalich.
Both Barbalich and Bryant indicated that uncapped ADSL products remain popular among their subscribers and are showing the best growth.
Telkom ADSL price cuts needed
Web Africa’s Bryant said that, while the growth on the back of data price cuts by ISPs are welcome, it is now time for Telkom to come to the party to significantly boost overall ADSL subscriber numbers.
“If we want to increase the ADSL subscriber growth overall in SA we need to collectively focus on addressing the issue of the price points still being too high. The largest portion of the broadband cost to the consumer, by far, now is from the Telkom phone and ADSL line rental portion (typically around 70%),” said Bryant.
“Telkom complains that these high prices are due to the “access line deficit”, but quite frankly other telecom companies have figured out how to offer broadband lines, for faster and cheaper – so there’s no reason SA can’t do the same.”
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