ADSL ISP price cut hopes

ISPs are hopeful they will see an IPC price cut from Telkom this year, which will have a positive effect on ADSL and FTTH services.

By - March 17, 2016 Share on LinkedIn
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Internet service providers are hopeful they will see an IPConnect (IPC) price cut from Telkom in 2016.

The last IPC price cut was on 1 May 2015, when Telkom reduced the price of many of its wholesale products – including Wholesale Fibre Broadband Access, IP Connect, and Resell DSL.

Internet service providers which bought wholesale ADSL bandwidth using the Telkom IP Connect service enjoyed a price reduction of between 1.4% and 63%.

To date, Telkom has been mum on a possible IPC price cut this year, and also did not respond to MyBroadband’s questions regarding the issue.

Despite the silence from Telkom, ISPs remain optimistic about an IPC price cut – which they say will be in Telkom’s interest.

Cybersmart CEO Laurie Fialkov said there is a lot of pressure on Telkom to cut IPC prices to make its FTTH service – which, like ADSL, uses IPC for wholesale access – more affordable.

“I anticipate an IPC price cut, but by how much Telkom may reduce its IPC pricing is uncertain,” said Fialkov.

MWEB CEO Derek Hershaw agrees that Telkom needs to cut IPC prices, because Telkom’s wholesale FTTH prices are currently higher than those of other FTTH operators.

Webafrica’s head of connectivity Greg Wright said there have been murmurs in the market about an IPC cut, but nothing concrete has emerged.

“We believe Openserve’s (formerly Telkom Wholesale) focus this year will be to service its FTTH customers adequately, and IPC is an integral part of this equation. We therefore expect some interesting manoeuvering here,” said Wright.

More on Telkom and IPC prices

New Telkom ADSL IPC price cuts – what you can expect

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