South Africa's Vox Telecom Launches Uncapped ADSL Service

Telecoms

South Africa’s leading alternative telecommunications company, Vox Telecom Ltd., is planning to launch uncapped asymmetric digital subscriber line (ADSL) service, as well as exploring the idea of offering 3G service to its customers, according to a post on MyBroadband.com site.

Vox Telecom CEO Douglas Reed told MyBroadband that “they believe uncapped ADSL is sustainable,” but highlighted that a “proper business model” is essential. He added, “Bottom line, uncapped broadband is what the consumer wants and a way has to be found for the Fair Access Policies (FAPs) to not only be transparent but not antagonize the average users.”

According to the MyBroadband report, Vox Telecom is planning to use its own network to deliver uncapped ADSL. The report quoted Reed, as saying, “It is an evolutionary process and in the interim we do offer Telkom, IS and MWEB wholesale packages.”

Currently, Telkom is the only provider of public switched communications services in South Africa, providing fixed-line voice, data, directory services and wireless data business services. As of March 31, 2006, Telkom had approximately 4.7 million telephone access lines in service and 99.9 percent of telephone access lines were connected to digital exchange. While Internet Solutions is South Africa’s major Internet service provider, MWEB is South Africa’s leading Internet service provider with services to other countries on the continent.

MyBroadband editor Rudolph Muller wrote, “Reed is well aware that it is not easy to make uncapped ADSL work financially with fluctuating margins and stiff competition.” According to Vox Telecom’s Reed, “It is a continuous balancing act to reduce input costs and to stay competitive in this highly deflationary sector of our business.”

Continuing to speak to MyBroadband, Reed told editor Muller that “economies of scale, investment in infrastructure and a focus on Internet services is key to make ADSL profitable.”

The company has been in business for over 10 years. And has grown organically and through strategic acquisitions, wrote Muller. It is listed on the JSE with a market cap of 2.5 billion.