If it seems too good to be true …

A week after my post about Telkom’s proposed reductions in its ADSL charges, MyADSL has revealed that Telkom is increasing its installation charges from an insane R404 to R437.50.

According to the Telkom website the new installation cost effective 1 August 2006 will be R437.50, an increase of R 33.50 from the previous R 404.00 . The Telkom helpdesk confirmed this increase.

Telkom’s DSL service requires at least three separate charges to be paid to Telkom, namely an installation charge, a monthly line rental charge and a DSL access charge. While the access portion was reduced, both the line rental and the installation charges were increased by Telkom.

The 24% reduction on the access portion only translates into an effective saving of 12% on current ADSL subscribers’ payment. This is not taking the 8% increase in installation charges into account.

It seems that what Telkom lose on the swings they make up on the merry go round, so to speak. The only problem with this scenario is that consumers are forced to take both rides, and have no choice between entertainment parks.

Orders placed before the 1st of August 2006 will still be charged the old rate for installation according to Telkom helpdesk.

This is just crazy.  The problem is that because Telkom holds all the cards (and will continue to do so until there is a new network to choose) they can do pretty much what they want.  Part of me is hoping they will be caught off guard when the SNO launches what I hope will be cheaper services but Telkom will probably do what it has always done, it will drop its prices when its competitors roll out cheaper prices and make a show of it at the same time.

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