![\"ADSL](\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2012\/12\/ADSL-prices-in-South-Africa.jpg\" "\\"ADSL")
<\/a>ADSL prices in South Africa<\/p><\/div>\n
Warning from history<\/h3>\n
Telkom has steadily been increasing the price of its analogue lines over the last decade, which may have been partly to blame for the continued decline in the company\u2019s fixed line subscriber numbers.<\/p>\n
World Wide Worx argues that the same will happen with ADSL subscriber numbers if Telkom continues to increase ADSL rates.<\/p>\n
\u201cThe ADSL price increase is strategically dangerous for Telkom. Being the first increase in nine years of ADSL provision, it may well signal a trend of ongoing price increases, much in the way that the cost of a normal fixed line phone rental increases every year,\u201d the report stated.<\/p>\n
\u201cShould this be the case, the prospects for any further ADSL growth will be dimmed. Based on a scenario of marginal increases every year, we can expect the product life cycle curve to be forced solidly into place.\u201d<\/p>\n
World Wide Worx said that the resultant graph of price versus users would look something as follows.<\/p>\n
Clearly, the impact of ongoing ADSL price increases will have the same effect as the current strategy of ongoing fixed line rental increases: it will solidify the decline of ADSL, and herald the demise of Telkom as an Internet service provider.<\/p>\n
![\"Number](\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2012\/12\/ADSL-lines-versus-price.jpg\" "\\"Number")
<\/a>Number of ADSL lines versus price<\/p><\/div>\n
Article courtesy of MyBroadband – ADSL price increase warning<\/a><\/strong><\/em><\/p>\n Alarm bells ringing for Telkom ADSL<\/strong><\/a><\/p>\n Telkom ADSL speed increase update<\/strong><\/a><\/p>\n Telkom ADSL growth slows further<\/strong><\/a><\/p>\nRelated articles<\/h3>\n