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Broadband bucks petrol, power price surge

Cape Town - While most prices are rocketing, it is the reverse for broadband.

A comparative analysis conducted by mybroadband on broadband, DStv, petrol and electricity prices from 2003 to 2013 showed a dramatic drop in fixed-line and mobile broadband prices.

The report stated that the constant evolution of technology, coupled with increasing market competition, resulted in lower prices for consumers.

Currently residential consumers can buy a 1Mbps ADSL service with a 5GB soft cap for a total cost of R367.37 a month, compared with R966.72 per month for 512 Kbps in 2003, mybroadband's analysis showed.

Mobile broadband prices plummeted even more than ADSL in the last decade.

Vodacom users can buy a 2GB data bundle for R99 (5c per MB), while in the past a 10MB data bundle was priced at R200 (R20 per MB).

In contrast electricity and petrol prices soared 190% and 210% respectively in the last decade. Pay-TV also weighed heavily on consumer budget, with an increase of 74% in the review period.

broadband, price hikes

Meanwhile, a separate report by the SA Network Societ showed that seven out of 10 South Africans use their cellphones to log on to the internet.

The study, a project of Wits Journalism, which was done in collaboration with Research ICT Africa, found that the top five reasons for connecting to the internet were:
  • To get information;
  • To socialise;
  • To study
  • Work/business; and
  • To look for a job.
Further findings included:
  • Three out of four internet users have accounts at one or more social networks;
  • 75% of social media users use the internet daily; and
  • About 2 million South Africans use internet access only for social networks.


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