Cut in ADSL costs on the way?

[I Robot]

According to this report in Fin24, it looks like Telkom is looking to bring down costs on ADSL services.

Johannesburg - Telkom announced on Monday that it filed for a cut in ADSL rental of up to 32% and an overall price cut of 2.1% with the independent telecommunications authority Icasa.

Africa's biggest telecoms company said in a statement that the main beneficiaries of its proposed price changes will be ADSL users who will enjoy a reduction in rentals of up to 32%.

There are also reductions of up to 20% in the monthly rental for residential ISDN services, a decrease of up to 39% in the rates for IPLCs (International Private Leased Circuits) as well as significant cuts in long distance and international call charges.

The price changes will take effect on August 1 2006 if they are approved by the Independent Communication Authority of South Africa.

How can ICASA say no.

[AndreMorgenrood]

I've got two ADSL lines so a 32% drop will be very welcome indeed!!

Andre'

[Dave A]

Seems the much vaunted ADSL price cut isn't quite as advertised.

TELKOM has denied misleading customers about the magnitude of its ADSL price cuts, saying SA will never be as cheap as in the US, reports Belinda Anderson.

The denial comes after broadband activist, myadsl.co.za founder Rudolph Muller slammed Telkom's proposed price cuts, charging that the effective decrease in ADSL pricing was closer to 12% than the 24% that Telkom claims.

Muller reached this conclusion after factoring in the decline in the ADSL access portion, but including the increases in installation and line rental.

Telkom Steven Hayward said it was not accurate to bundle these together; this was a case of "Chinese maths".

It seemed that whatever Telkom did with its pricing, it would inevitably take a hiding depending on how one played around with the numbers, he said.

Full story here.