ADSL price cuts on the horizon?

19 September 2013
Telkom money header

On 19 September 2013, Telkom announced tariff reductions on some of its wholesale products, including an 8% cut to IP Connect (IPC), its wholesale ADSL product.

This means there could be price cuts down the supply chain from Internet Service Providers (ISPs) who use Telkom’s IP Connect wholesale product. We are awaiting feedback from ISPS on this.

Confirming information MyBroadband received from sources at the start of July 2013, Telkom said that this latest reduction is in keeping with the obligations in the settlement agreement reached with the Competition Commission.

The agreement was made an order of the Competition Tribunal on 18 July 2013, Telkom said.

“Telkom and the Commission had agreed which products will be subject to price reductions, as well as the extent to which the tariffed prices of those products would be reduced within the 2014 financial year,” Telkom said.

From 17 October 2013, Telkom Wholesale will reduce the effective tariff prices of IP Connect by 8%; Diginet by 4%; CHIPAC by 4%; Ethernet Express by 6%; Metro Clear by 6% and IPLC’s by 25%.

Additionally, Telkom Wholesale will implement an effective 10% price reduction on the “off the shelf” prices across the following SAIX Dedicated Access services:

  • SAIX Silver National International 75/25;
  • SAIX Gold National International 75/25;
  • SAIX International IP Transit; and
  • SAIX National Plus.

These price cuts, stipulated by the Competition Tribunal, come after Telkom announced a free increase in IPC capacity in mid-August 2013.

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  1. Scooby070707
    02.10.2013 at 13:39

    Well if the price cut is not more then 10 % then whats the point. Compare what we pay here to the rest of the world. We are getting screwed big time

    For what I pay for a 4Mb line uncapped here you get a 30 to 60 Mb line in the UE or US depending where you live

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