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Thursday, June 24, 2010

Environment Related Legislation


The list above, is just a small snapshot of the turmoil in the local telecommunications industry at the moment. Up until recently, the consensus was that the increased levels of competition would not necessarily bring down prices, but would increase service and service levels - i.e. for the same price you would now get a faster line and a higher cap (monthly data usage limit).

This week however, Vodacom made some bold statements about having to drive prices down and as we have seen before, if a major player like this makes a move, the rest are forced to follow.

Although we can't as yet predict the future, we can however issue the following warning. As lucrative as a deal might look at this point, do not sign any long term contracts. If you do, you will be locked in to higher prices for at least two years. If you go with an ADSL service, rather pay R500 - R1000 for your Modem/Router, than go for the free option which ties you in to the two year contract.

Gary Amstutz
Commercial and Online Manager