You will no longer have to pay for Telkom line rental

Its prepared to stop calling it line rental....thats about it

“Very soon, in your own household, your bill will no longer have “line”,” he said. “It will just be a package of 25GB or 50GB, which will be priced as a service.”

“There will not be an itemized line item called “line rental” on your bill,” said Maseko.
Click to expand...

You'll still get charged, we jhust dont know if the price is going up, staying same or going down.
 
Urgh!!! I'm really getting tired of South African pessimism. Legally, if the item is not listed on your invoice, you are not liable to pay for it. Thus, if they are removing line rental from your monthly invoice, you will not be paying for it.

Telkom charges for line rental, and people bitch
Telkom removes the charge from their invoices, effectively giving it free, and people bitch.

Seriously, what in the hell would make people happy? I for one welcome this move with open arms.
 
But would you have to have an ADSL package hosted with them in order for this to be effective?
 
DieGrootHammer said:
Urgh!!! I'm really getting tired of South African pessimism. Legally, if the item is not listed on your invoice, you are not liable to pay for it. Thus, if they are removing line rental from your monthly invoice, you will not be paying for it.

Telkom charges for line rental, and people bitch
Telkom removes the charge from their invoices, effectively giving it free, and people bitch.

Seriously, what in the hell would make people happy? I for one welcome this move with open arms.
Click to expand...

The main issue (That Hellkom started fighting literally decades ago) is unbundle-ing of the ADSL offering. At the moment you need three things to have DSL:

* ADSL line rental
* Data from an ISP
* Telephone line rental

We need Telkom to stop charging the telephone line rental as a prerequisite for the DSL line. Rebranding the DSL line rental as part of the data package is a bit of a non-issue being "fixed", and I, for one, prefer to have seperate DSL line rental and data packages. See, in PMB I payed for a "Telkom DSL fast", which is up to 2 mbps, but the line could only do 1 mbps. For now, at least I have the option of getting a 1 mbps uncapped package in that case, so that I don't get screwed on both line and data.

I doubt if I'll have the option with Telkom's new plan.
 
DieGrootHammer said:
Urgh!!! I'm really getting tired of South African pessimism. Legally, if the item is not listed on your invoice, you are not liable to pay for it. Thus, if they are removing line rental from your monthly invoice, you will not be paying for it.

Telkom charges for line rental, and people bitch
Telkom removes the charge from their invoices, effectively giving it free, and people bitch.

Seriously, what in the hell would make people happy? I for one welcome this move with open arms.
Click to expand...

Its not so much pessimism as hearing what they're saying. as my quote shows. they're renaming it. you will not be billed for "line rental". it is now part of a "service" that they office in 25gb/50gb increments.

What people WANT are naked DSL. theres a big difference between the 2 and some people think this means the one.
 
Avatar said:
The main issue (That Hellkom started fighting literally decades ago) is unbundle-ing of the ADSL offering. At the moment you need three things to have DSL:

* ADSL line rental
* Data from an ISP
* Telephone line rental

We need Telkom to stop charging the telephone line rental as a prerequisite for the DSL line. Rebranding the DSL line rental as part of the data package is a bit of a non-issue being "fixed", and I, for one, prefer to have seperate DSL line rental and data packages. See, in PMB I payed for a "Telkom DSL fast", which is up to 2 mbps, but the line could only do 1 mbps. For now, at least I have the option of getting a 1 mbps uncapped package in that case, so that I don't get screwed on both line and data.

I doubt if I'll have the option with Telkom's new plan.
Click to expand...

mottamort said:
Its not so much pessimism as hearing what they're saying. as my quote shows. they're renaming it. you will not be billed for "line rental". it is now part of a "service" that they office in 25gb/50gb increments.

What people WANT are naked DSL. theres a big difference between the 2 and some people think this means the one.
Click to expand...

So the numbers are in, Telkom had their annual financial statement presentation, and the numbers clearly show that line rentals are in the decline. Not only that, but the fact that Telkom can provide FTTH services cheaper than that of total ADSL bundles while still making a profit on each FTTH customer, plus the fact that Telkom wants to provide voice services free, does point in the overall business decision that Line Rental will not be rebranded as a different service, but rather removed as a cost completely.

That does however pose a business problem for Telkom, as Line Rental was pretty much a money press for them. What will happen with the money they've generated from Line Rental should it be rendered cost free? Well, the problem is that they, as well as the competition, is out pricing themselves out of the ISP market by providing alternative, cheaper options, like FTTH and LTE. The overhead costs of those are potentially lower, thus haing higher MC to overall Telkom EBITDA.

The fact remains that it is too unclear of a statement made by Telkom CEO to assess whether or not this will in fact be naked ADSL, or are you getting the line rental cost free now. It would certainly look as if the overall business vision set out by Telkom is one that is focused on providing data products as services, with voice being a secondary option only. Seeing as Telkom Mobile is quite liquid, one can even argue that their voice strategy would be directed to Telkom Mobile, not Telkom Line rentals. The quote he said "It is less about lines, and more about the service" speaks about this. This would see less cannibalism of different Telkom products on each other.

IMHO
 
To me the point in question is then how do I prove to Telkom that I don't require a line rental but do require ADSL line, as they are one in the same line.
 
DieGrootHammer said:
So the numbers are in, Telkom had their annual financial statement presentation, and the numbers clearly show that line rentals are in the decline. Not only that, but the fact that Telkom can provide FTTH services cheaper than that of total ADSL bundles while still making a profit on each FTTH customer, plus the fact that Telkom wants to provide voice services free, does point in the overall business decision that Line Rental will not be rebranded as a different service, but rather removed as a cost completely.

That does however pose a business problem for Telkom, as Line Rental was pretty much a money press for them. What will happen with the money they've generated from Line Rental should it be rendered cost free? Well, the problem is that they, as well as the competition, is out pricing themselves out of the ISP market by providing alternative, cheaper options, like FTTH and LTE. The overhead costs of those are potentially lower, thus haing higher MC to overall Telkom EBITDA.

The fact remains that it is too unclear of a statement made by Telkom CEO to assess whether or not this will in fact be naked ADSL, or are you getting the line rental cost free now. It would certainly look as if the overall business vision set out by Telkom is one that is focused on providing data products as services, with voice being a secondary option only. Seeing as Telkom Mobile is quite liquid, one can even argue that their voice strategy would be directed to Telkom Mobile, not Telkom Line rentals. The quote he said "It is less about lines, and more about the service" speaks about this. This would see less cannibalism of different Telkom products on each other.

IMHO
Click to expand...

You forgot to drop the mic :p

I like how you phrased it; Telkom has pushed their own money press out of business. They need to catch the falling revenue somewhere, as it's not insubstantial.
You're absolutely right, too, that the statement that we're basing all of this discussion on is incredibly vague, and only time will tell. However, my prediction:
* This won't be naked DSL. That will never happen. We're going to move to FTTH for the benefits that we required from naked DSL.
* The line cost will be (roughly) added on to the data packages to create a single service subscription. It will also likely be subsidized from some other part of the package, maybe taking a small cut in data profit (disclaimer: I've no idea what a profit margin on data looks like)
* We'll still all dislike Telkom immensely, and jump ship to FTTH the first chance we get.

I think Telkom's best chance these days is to pivot to primarily a mobile supplier as a spearhead to its services, especially in anticipation of them losing market to all of the FTTH players coming in. They had the monopoly by controlling the last mile, and now that that's gone, they need to pivot to survive.
 
Ok seeing as my brain is not functioning today help me out here. Will you still pay the 189 for your voice line but your dsl part of it say for instance my 4mb line will be free of charge if it is with telkom or is it the other way around ill pay adsl line but my normal voice line rental will then be free. If its the latter a lot of isp's are going to lose out on their bundle packages seeing as people will move back to telkom for the free line. Correct me if im wrong somewhere.
 
Luckily my Fibre is installed and the Router is on its way.

I've had my land-line for almost 3 years and it rang once ... by accident.

Upgrading to Fibre I get to cancel all ties to Telkom (billing wise) but reading that they are going to be remove the lined item from the billing does kind of still get to me, as I've literally just been paying it this whole time so that I can get ADSL.

Ow well ... building my bridge and getting over it.
 
Hopefully it means that the cost is removed, but we just have to wait and see, or at least wait for a clearer statement from them.
 
You must log in or register to reply here.
Back
Top