{"id":117703,"date":"2017-05-21T10:30:08","date_gmt":"2017-05-21T08:30:08","guid":{"rendered":"https:\/\/mygaming.co.za\/news\/?p=117703"},"modified":"2017-05-19T16:26:57","modified_gmt":"2017-05-19T14:26:57","slug":"what-openserve-price-cuts-mean-for-adsl-and-fibre-users","status":"publish","type":"post","link":"https:\/\/mygaming.co.za\/news\/broadband\/117703-what-openserve-price-cuts-mean-for-adsl-and-fibre-users","title":{"rendered":"What Openserve price cuts mean for ADSL and Fibre users"},"content":{"rendered":"<p>Internet service providers have applauded Openserve for its recent IP Connect (IPC) price cuts, which will improve the value consumers receive.<\/p>\n<p>Openserve\u2019s IPC is used by ISPs for ADSL, VDSL, and fibre-to-the-home (FTTH) products.<\/p>\n<p>Depending on the IPC capacity purchased, ISPs can now benefit from price reductions of up to 32% \u2013 effective from 1 June 2017.<\/p>\n<p>The Openserve price cuts will help ISPs improve the DSL experience and make FTTH products more attractive, they said.<\/p>\n<p>MyBroadband spoke to\u00a0prominent South African ISPs regarding Openserve\u2019s price cuts \u2013 and what customers can expect.<\/p>\n<hr \/>\n<h3 class=\"my-4\">Afrihost \u2013 It will improve the ADSL experience and will help fibre roll-out<\/h3>\n<p><a href=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2017\/05\/Greg-Payne1.jpg\" data-slb-active=\"1\" data-slb-asset=\"1919592777\" data-slb-internal=\"0\" data-slb-group=\"slb\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-211404\" src=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2017\/05\/Greg-Payne1.jpg\" alt=\"Greg Payne\" width=\"600\" height=\"387\" \/><\/a><\/p>\n<p>Afrihost\u2019s commercial director Greg Payne congratulated Openserve for the price reduction, stating it will improve the general ADSL experience and will help Openserve\u2019s fibre roll-out.<\/p>\n<p>\u201cHaving said that, there is still a long way for them to go to be competitive compared to other open access FTTH providers,\u201d said Payne.<\/p>\n<p>Payne said the price cuts will help Afrihost to upgrade its network capacity to ensure all its clients get the best experience possible.<\/p>\n<hr \/>\n<h3 class=\"my-4\">Axxess \u2013 We plan to use most of the savings to increase our network capacity<\/h3>\n<p><a href=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2013\/10\/Franco-Barbalich.jpg\" data-slb-active=\"1\" data-slb-asset=\"1618994222\" data-slb-internal=\"0\" data-slb-group=\"slb\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-89689\" src=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2013\/10\/Franco-Barbalich.jpg\" sizes=\"auto, (max-width: 709px) 85vw, (max-width: 909px) 67vw, (max-width: 984px) 61vw, (max-width: 1362px) 45vw, 600px\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2013\/10\/Franco-Barbalich.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2013\/10\/Franco-Barbalich-250x166.jpg 250w\" alt=\"Franco Barbalich\" width=\"600\" height=\"400\" \/><\/a><\/p>\n<p>Axxess director Franco Barbalich welcomed the price cut. He said they plan to use most of the savings to increase network capacity.<\/p>\n<p>\u201cThis price cut and network upgrades will help us to deliver an even better service to our clients,\u201d said Barbalich.<\/p>\n<hr \/>\n<h3 class=\"my-4\">Internet Solutions \u2013 IPC price cuts are good news, but we believe Telkom could completely remove IPC charges<\/h3>\n<p><a href=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2017\/05\/Sean-Nourse.jpg\" data-slb-active=\"1\" data-slb-asset=\"241445773\" data-slb-internal=\"0\" data-slb-group=\"slb\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-211406\" src=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2017\/05\/Sean-Nourse.jpg\" alt=\"Sean Nourse\" width=\"600\" height=\"400\" \/><\/a><\/p>\n<p>Sean Nourse, chief solutions officer at Internet Solutions, said that while IPC price cuts are good news, he believes Telkom could completely remove IPC charges.<\/p>\n<p>\u201cAs a pan-African telecommunications provider, we fail to realise why IPC costs exist today in South Africa \u2013 as opposed to a nominal interconnect fee,\u201d said Nourse.<\/p>\n<p>\u201cIn fact, we don\u2019t pay any IPC costs with our FTTH providers, the only fee we incur on occasion is a nominal interconnect fee. It\u2019s time for real change.\u201d<\/p>\n<p>Nourse said IS continuously looks to pass on value to clients that occurs through changes in the industry.<\/p>\n<p>\u201cGiven the announcement is recent and Telkom had not communicated this change prior to this announcement, we need to complete our analysis so we can pass sustainable value onto our clients,\u201d he said.<\/p>\n<hr \/>\n<h3 class=\"my-4\">Cybersmart \u2013 The only financially-sustainable option is to increase value as opposed to reducing prices<\/h3>\n<p><a href=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2016\/01\/Laurie-Fialkov-headline.jpg\" data-slb-active=\"1\" data-slb-asset=\"1544875080\" data-slb-internal=\"0\" data-slb-group=\"slb\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-152147\" src=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2016\/01\/Laurie-Fialkov-headline.jpg\" sizes=\"auto, (max-width: 709px) 85vw, (max-width: 909px) 67vw, (max-width: 984px) 61vw, (max-width: 1362px) 45vw, 600px\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2016\/01\/Laurie-Fialkov-headline.jpg 630w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2016\/01\/Laurie-Fialkov-headline-250x166.jpg 250w\" alt=\"Laurie Fialkov headline\" width=\"600\" height=\"400\" \/><\/a><\/p>\n<p>Cybersmart CTO Laurie Fialkov said\u00a0most of the revenue on DSL is on the line rental, which ranges between 70% and 85% of the price of the product.<\/p>\n<p>The impact of the Openserve IPC price cut therefore only affects a small part of the overall price of DSL and FTTH products.<\/p>\n<p>\u201cBecause FTTH is also running on IPC and an ISP\u2019s speed requirement has more than doubled \u2013 from 40Mbps for VDSL to 100Mbps on FTTH,\u201d he said.<\/p>\n<p>\u201cThis means you need to take most of that 32% saving and reinvest it in network capacity, otherwise you run the risk of significantly impairing the quality of the service.\u201d<\/p>\n<p>Fialkov said the only financially-sustainable option is to increase value, as opposed to reducing the price of DSL and FTTH products.<\/p>\n<hr \/>\n<h3 class=\"my-4\">Telkom \u2013 We hope to announce developments in the coming months<\/h3>\n<p><a href=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2016\/01\/Jacqui-%E2%80%98O-Sullivan.jpg\" data-slb-active=\"1\" data-slb-asset=\"1297555344\" data-slb-internal=\"0\" data-slb-group=\"slb\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-152271\" src=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2016\/01\/Jacqui-%E2%80%98O-Sullivan.jpg\" sizes=\"auto, (max-width: 709px) 85vw, (max-width: 909px) 67vw, (max-width: 984px) 61vw, (max-width: 1362px) 45vw, 600px\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2016\/01\/Jacqui-\u2018O-Sullivan.jpg 630w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2016\/01\/Jacqui-\u2018O-Sullivan-250x166.jpg 250w\" alt=\"Jacqui \u2018O Sullivan\" width=\"600\" height=\"400\" \/><\/a><\/p>\n<p>Telkom spokesperson Jacqui O\u2019Sullivan said the company continuously reviews its products and services to offer its customers more value.<\/p>\n<p>\u201cWe hope to announce some developments in this regard in the coming months,\u201d said O\u2019Sullivan.<\/p>\n<hr \/>\n<h3 class=\"my-4\">Webafrica \u2013 Too early to comment<\/h3>\n<p><a href=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2015\/07\/Greg-Wright.jpg\" data-slb-active=\"1\" data-slb-asset=\"506315\" data-slb-internal=\"0\" data-slb-group=\"slb\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-131604 size-large\" src=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2015\/07\/Greg-Wright-600x400.jpg\" sizes=\"auto, (max-width: 709px) 85vw, (max-width: 909px) 67vw, (max-width: 984px) 61vw, (max-width: 1362px) 45vw, 600px\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2015\/07\/Greg-Wright-600x400.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2015\/07\/Greg-Wright-250x166.jpg 250w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2015\/07\/Greg-Wright.jpg 630w\" alt=\"Greg Wright, Webafrica\" width=\"600\" height=\"400\" \/><\/a><\/p>\n<p>Webafrica\u2019s Greg Wright said it is too early for them to comment, and that they will need to meet with their upstream provider to determine the impact of the price cuts.<\/p>\n<hr \/>\n<p><em>This article first appeared on <strong><a href=\"https:\/\/mybroadband.co.za\/news\/adsl\/211398-adsl-and-fibre-users-to-get-more-value.html\" target=\"_blank\" rel=\"noopener noreferrer\">MyBroadband <\/a><\/strong>and is republished with permission.<\/em><\/p>\n<h4><strong>Now read:\u00a0<a href=\"https:\/\/mybroadband.co.za\/news\/adsl\/211276-openserve-cuts-wholesale-adsl-and-fibre-to-the-home-prices.html\">Openserve cuts wholesale ADSL and fibre-to-the-home prices<\/a><\/strong><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>Internet service providers have applauded Openserve for its recent IP Connect (IPC) price cuts, which will improve the value consumers receive.<\/p>\n","protected":false},"author":226,"featured_media":108645,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_enabled":true,"_sma_x_custom_text":"","_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[8812],"tags":[293,6587,20276],"class_list":["post-117703","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-broadband","tag-adsl","tag-fibre","tag-openserve"],"_links":{"self":[{"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/posts\/117703","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/users\/226"}],"replies":[{"embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/comments?post=117703"}],"version-history":[{"count":1,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/posts\/117703\/revisions"}],"predecessor-version":[{"id":117705,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/posts\/117703\/revisions\/117705"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/media\/108645"}],"wp:attachment":[{"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/media?parent=117703"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/categories?post=117703"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/tags?post=117703"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}