Local Internet service provider RSAWeb has announced its new ADSL line rental prices, which it claims are the lowest-ever seen by the South African market since the service was introduced in 2002.

The new prices offer savings of up to 30% and R1 092.00 per annum.

Rob Gilmour, MD of RSAWeb, says the high cost of ADSL line rentals is the last barrier to providing affordable broadband access to all South Africans.

“Consumers have benefitted from the recent price wars over data, but when you add the cost of line rentals, the barrier still remains too high – especially for the lower income groups that have been hardest hit by recessionary pressures and rampant inflation.

“The wider economic benefits of a connected society will only truly be felt once this barrier is removed, and broadband penetration can grow unhindered.”

Despite the steady fall of ADSL and mobile data costs due to healthy competition over the past two years, the cost of ADSL line rentals has not followed suit.

“ICASA is making strides in the right direction with LLU, but the progress is too slow and too late in the game,” comments Gilmour.

He adds that the new prices will not only benefit consumers, but the industry at large.

“By removing the barriers of high line rental costs, broadband penetration can grow at a faster pace, creating a much larger pool of Internet users. The new prices will also put pressure on the incumbents to lower the wholesale prices of line rentals, as we’ve seen was the case with the recent broadband data price wars.”

The new prices, which offer savings of up to 30% or R1 092.00 per annum, are available on RSAWeb’s consumer capped ADSL product, Super DSL.