Competition in the broadband market has led incumbent telecom provider Dhiraagu to today announce a 50 percent promotional price cut on broadband ADSL connections, from Rf 500 to Rf 250 or Rf 1000 to Rf 500 if a new line has to be installed.
The move comes weeks after the telco doubled its speeds and bandwidth allowances for many ADSL packages, widely considered a reaction to the annoucement by competitor Raajje Online (ROL) that it was rolling out fibre to the home (FTTH).
Dhiraagu has control of the specific ADSL market, especially the low-mid market for internet services, while ROL has traditionally catered to heavier users, delivering connections through cable TV suppliers Medianet and Bnet. Its new FTTH offering further caters to the high-end market, and is the first such service to be unrolled in South Asia.
ADSL remains tried-and-proven with little extra infrastructure required, and Dhiraagu’s two month price cut in likely an attempt to further increase its customer base it can later tempt with high speed offerings.