Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Icasa told to align on BEE in move that will favour Starlink - Solly Malatsi

      Icasa told to align on BEE in move that will favour Starlink

      12 December 2025
      South African solar industry faces a reality check

      South African solar industry faces a reality check

      12 December 2025
      OpenAI launches GPT-5.2 after 'code red' push to counter Google. Shelby Tauber/Reuters

      OpenAI launches GPT-5.2 after ‘code red’ push to counter Google

      12 December 2025

      A leaner BCX positions itself as market consolidator

      11 December 2025
      Australia has banned kids from social media. Should South Africa follow suit?

      Australia has banned kids from social media. Should South Africa follow suit?

      11 December 2025
    • World
      Oracle’s AI ambitions face scrutiny on earnings miss

      Oracle’s AI ambitions face scrutiny on earnings miss

      11 December 2025
      China will get Nvidia H200 chips - but not without paying Washington first

      China will get Nvidia H200 chips – but not without paying Washington first

      9 December 2025
      IBM reportedly close to $11-billion deal to buy Confluent - Arvind Krishna

      IBM reportedly close to $11-billion deal to buy Confluent

      8 December 2025
      Amazon and Google launch multi-cloud service for faster connectivity

      Amazon and Google launch multi-cloud service for faster connectivity

      1 December 2025
      Google makes final court plea to stop US breakup

      Google makes final court plea to stop US breakup

      21 November 2025
    • In-depth
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      Canal+ plays hardball - and DStv viewers feel the pain

      Canal+ plays hardball – and DStv viewers feel the pain

      3 December 2025
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
    • TCS
      TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

      TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

      12 December 2025
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
    • Opinion
      Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

      Netflix, Warner Bros deal raises fresh headaches for MultiChoice

      5 December 2025
      BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

      BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

      3 December 2025
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » Telkom price cuts don’t reach end users

    Telkom price cuts don’t reach end users

    By Sunil Gopal26 May 2015
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    ethernet-640

    Telkom’s wholesale price cuts of up to 63% announced last month have so far failed to translate into lower prices for those with broadband digital subscriber lines.

    Internet service providers (ISPs) that were prepared to comment were not expecting to announce any price cuts soon as the fine print associated with Telkom’s price reductions left them little room to move.

    In late April, Telkom’s wholesale services division announced cuts of up to 63% across its product range, including IP Connect and metro Ethernet.

    “The IP Connect price cuts were not price cuts as claimed. We have to pay 15% more in order to get double the bandwidth,” says Cybersmart CEO Laurie Fialkov. ISPs pay IP Connect fees in order to get access to Telkom’s last-mile network infrastructure.

    “If you go to a restaurant and order a ‘buy one get one free’ special, it is only useful if you can eat the other steak, otherwise it has no value whatsoever,” says Fialkov. “This is the situation we find ourselves in. We have to pay 15% extra to get more bandwidth than we could ever use.”

    He says it is unlikely Cybersmart will reduce prices for ADSL data, especially since previous IP Connect price cuts are already fully factored into its fees.

    Crystal Web, another ISP, meanwhile says it is in negotiations with various parties, saying, too, that Telkom’s price cuts are not as simple as made out.

    “In order to take advantage of this once-off offer, one has to spend a lot more money to obtain a benefit that may not necessarily be needed or required by the ISP,” says Crystal Web CEO Shaun Kaplan.

    “While it’s an effective rate reduction, it’s not without its cost implications to ISPs,” he adds.

    WebAfrica CEO Tim Wyatt-Gunning says that his company is also in discussion “to fully understand the terms around the finer details of Telkom’s offer”.

    “We hope we will have that soon,” he says. WebAfrica buys its bandwidth from Internet Solutions.

    In an interview at the end of April, just days after Telkom announced its wholesale pricing strategy, Internet Solutions MD Saki Missaikos predicted that the price cuts — effective on 1 May — should lead to big savings for consumers on their broadband bills.

    Tim Wyatt-Gunning
    Tim Wyatt-Gunning

    He said at the time that it was still too early to say what sort of discounts Internet Solutions would be able to pass on to ISPs, which will ultimately affect what end users pay.

    Internet Solutions carries a significant percentage of all DSL traffic in South Africa, and provides facilities to large Internet service providers such as MWeb and WebAfrica.

    Missaikos said then that it was not clear what conditions service providers would have to agree to in order to secure the maximum 63% discount proposed by Telkom. He said Telkom was attempting to protect its copper network as far into the future as possible.

    An Internet Solutions spokesman could not be reached for comment this week.

    The Internet Service Providers’ Association previously welcomed the price cuts, with spokesman Ivan Booth saying it “looks forward to further details regarding the reductions”.  — © 2015 NewsCentral Media



    Crystal Web Cybersmart Internet Solutions Laurie Fialkov Saki Missaikos Shaun Kaplan Telkom Tim Wyatt-Gunning WebAfrica
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleMuthambi acted unlawfully at SABC
    Next Article Mobile the pathway to Internet in Africa

    Related Posts

    A leaner BCX positions itself as market consolidator

    11 December 2025
    Vodacom follows MTN with post-paid price hikes

    Vodacom follows MTN with post-paid price hikes

    11 December 2025
    Why MTN still won't rule out a deal with Telkom - Ralph Mupita

    Why MTN still won’t rule out a deal with Telkom

    26 November 2025
    Company News
    When the physical world goes online: the new front line of cyber risk - Snode Technologies

    When the physical world goes online: the new front line of cyber risk

    12 December 2025
    Endless possibilities with Adapt IT Telecoms' unified VAS platform - Matthew Seabrook

    Endless possibilities with Adapt IT Telecoms’ unified VAS platform

    11 December 2025
    Securing IoT connectivity: how MSB Micro Systems keeps devices in check

    Securing IoT connectivity: how MSB Micro Systems keeps devices in check

    11 December 2025
    Opinion
    Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

    Netflix, Warner Bros deal raises fresh headaches for MultiChoice

    5 December 2025
    BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

    BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

    3 December 2025
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Icasa told to align on BEE in move that will favour Starlink - Solly Malatsi

    Icasa told to align on BEE in move that will favour Starlink

    12 December 2025
    South African solar industry faces a reality check

    South African solar industry faces a reality check

    12 December 2025
    TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

    TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

    12 December 2025
    OpenAI launches GPT-5.2 after 'code red' push to counter Google. Shelby Tauber/Reuters

    OpenAI launches GPT-5.2 after ‘code red’ push to counter Google

    12 December 2025
    © 2009 - 2025 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}