Telkom`s monopoly has benefited the mobile and wireless telecoms service providers in SA, says Rudolph Muller, founder of MyADSL.
"Telkom`s high ADSL prices and slow installation means wireless Internet service providers (iBurst, Vodacom, MTN and to a lesser degree MyWireless) can compete effectively against Telkom. They have since grown to be a remarkable force in the South African telecoms arena," he says.
"Internationally, DSL and cable (fixed-line) account for over 95% of all broadband connections. In SA, the figure is closer to 60% fixed-line, and 40% wireless. If ADSL was more accessible with fast installation times and in line with international prices it is highly unlikely people would even consider iBurst, 3G or HSDPA as a primary connection.
"As a whole, Telkom`s monopoly has not benefited SA," explains Muller. "It simply means that most South Africans are using expensive wireless services as primary telephony and data services."
BMI-TechKnowledge telecoms analyst Richard Hurst says: "A monopoly market will seldom benefit any market or related environment. We remain one of the most expensive countries for telecommunications in the world due to the legacy of the telecommunications monopoly.
"The stifling of competition has had a detrimental effect on the development of our ICT industry. A number of related industries, such as outsourcing and software development, have been impacted by this. We have continued to be hobbled by high bandwidth prices and the lack of penetration of fixed services into the greater community."
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