SA lacks ADSL competitiveness

Johannesburg, 04 May 2005

A new study on Internet connectivity by the MyADSL Web site has indicated that broadband connections in SA are unaffordable for the average citizen.

According to the study, a standard ADSL broadband connection in countries such as the US, UK and Japan would cost the average user around 1% of their monthly income, while in SA it will cost users anywhere from 46% to 105% of their monthly salary.

The MyADSL investigation focused on all aspects of broadband services, including price, speed and reliability, and showed SA`s lack of competitiveness in comparison even to markets such as Egypt and Brazil.

Japan`s unlimited Yahoo Broadband 45Mb ADSL - which would cost a user R230 per month, or 1% of their salary - scored the highest in terms of speed, price and reliability, with 97%.

Second was the US`s unlimited Earthlink DSL, which would cost R213 per month and scored 76% on the poll, followed by the UK`s BT Yahoo DSL 2Mb service, which has a cap of 15Gb and would cost its user R292 per month, which scored 56%.

Brazil`s unlimited DSL512 service, priced at R224 per month, was just behind with 55%, with Australia`s Bigpond DSL 1500/256 service, capped at 20Gb and costing R623 per month scoring 49%.

Egypt`s unlimited Menanet ADSL512, costing R255 per month, scored 47%, while SA`s highest scoring service in the survey, Telkom`s DSL384 service, capped at 2Gb and costing R647, scored 28%.

Telkom`s unshaped DSL512 service, capped at 4Gb and priced at R1 478 per month, scored 24% and was the service that indicated it would cost the average South African 105% of their monthly income to afford it.

"This comprehensive study of local and international broadband services clearly indicates the lack of local services to compete with their international counterparts," says MyADSL founder, Rudolph Muller.

"Our local services are also far inferior to the international offerings, meaning that South Africans are therefore paying exorbitant fees for inferior broadband services."

He also points out that with the high cost to the average citizen for such services, it is hardly surprising that a massive digital divide is developing, where only the wealthy sector of our society can afford these services.

"We feel strongly that it is government`s responsibility to ensure broadband Internet will be a commodity that is affordable to most sectors of our society, since it is common knowledge that it will fuel the economy, create jobs and assist to make SA a global player in the IT arena," he says.

"Without government intervention, the already substantial digital divide will simply widen, making it impossible for South Africans to compete favourably in the global IT marketplace."