Telkom cuts wholesale broadband prices

Telkom wholesale division Openserve is cutting IP Connect prices again in a move that should ultimately lead to lower prices for fixed-line broadband users.

Prenesh Padayachee

Telkom wholesale division Openserve is cutting IP Connect (IPC) prices again in a move that should ultimately lead to lower prices for fixed-line broadband users.

IPC is the way in which Internet service providers connect to Openserve’s network to provide their own copper DSL and fibre offerings to end users.

“Depending on the IPC capacity purchased, ISPs can now benefit from price reductions of up to 32%, effective from 1 June,” Telkom said on Thursday.

The operator did not provide a detailed breakdown of the price cuts, and which products are affected by the move.

“We are committed to our journey of making broadband more affordable in South Africa. We firmly believe that by stimulating the growth of fixed broadband in South Africa, we are contributing to economic growth,” said Openserve sales and marketing chief Prenesh Padayachee in a statement.

Padayachee said the latest price cuts are meant to reduce the cost of entry for smaller players in the broadband resale market.

“We recognise the importance of entrepreneurship and the impact it can have in stimulating growth in the current economic climate and, as such, set out to find ways to assist in sustaining the smaller players in our broadband ecosystem,” he said.  — (c) 2017 NewsCentral Media

Share this article

  • FaceItSA

    IPC shouldn’t even be in existence. It’s price is higher than IPT and only brings the cost of broadband up. The lower price still makes it impossible for new players to enter the market. A move in the right direction, but still not quite there. I would suggest doing what other FTTH layer one company’s do, meet in neutral data centres and charge a much lower port fee.