Competition Commission confirms IP Connect agreement with Telkom

Bradley Prior

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Competition Commission confirms IP Connect agreement with Telkom

The Competition Commission has confirmed that it has reached an agreement with Telkom regarding the pricing of its wholesale IP Connect product.

"The Competition Commission and Telkom have reached an agreement on the substantial reduction of wholesale broadband access costs in order to remove excessive pricing concerns in respect of IP Connect raised in the Data Services Market Inquiry Report published in December last year," the Commission said.
 
Well this is pretty exciting. Curious to see how this will affect the end users on thing like Openserve fibre when this is implemented. Should hopefully mean highers speeds or lower prices.
 
but.. when will it be implemented?

sorry - within 2 months :) skim read.
 
And I don't expect any drastic price reductions for end users.. ISP's using IPC will probably stall a few months before reducing prices, if it all, to make some profit for a change..

Hope I am proven wrong..
 
Was R1018 now R1017...........................watch this space very little will benefit the end user as usual-----surprise me!!
 
We here in South Africa pay way to much for internet people in countrys like Romania get 1Gb speeds for half of what we pay for a 20mb fibre uncapped connection
 
Well this is pretty exciting. Curious to see how this will affect the end users on thing like Openserve fibre when this is implemented. Should hopefully mean highers speeds or lower prices.
Well there's your problem (ok a problem for all OpenServe customers).
 
Unlikely to have an effect on pricing. The Base raw line rental fees are increasing and IP Connect will reduce. So depending on the new prices the ISP will see a drop in their IP Connect bill but an increase in their line rental bill. ISPs like Cool Ideas and Afrihost is currently selling it at a break even cost maybe slightly above depending on factors but yeah not really profitable at all.

The IP connect reductions will likely mean that MOST ISPs will drop any shaping and throttling and those that offer 200/100 at R2000+ will drop to ~R1500 for 200/100. Currently Vumatel 200/200 is priced at ~R1500 give or take so I personally don't expect Openserve to beat those prices after all it will be up to the ISPs what margins they would want on them.

I would love to see Openserve releasing 500/250 but that will likely be the max speed. Openserve network generally is very good with little issues compared to others if you take complaints on this forum into account. Increasing base speeds and lowering IP Connect fees will likely see an increase in overall bandwidth consumption so will be interesting to see how their gpon copes.
 
Airtel wanted to come here in 2011 but was not allowed and went to rest of africa. Imagine if AIRTEL and ICICI bank from India is allowed to come here and operate. You will not be paying the ridiculous fees/rates you pay but they will never ever get a license to operate here due to the strong lobby
Nothing you have posted so far in this thread is relevant to OpenServe/IPConnect or even the Competition Commission.

In SA we have been having (sic) the promises of India in the form of Neotel and that was a load of snot circling the drain from the start, we have also had the Guptas and the Bank of Baroda, and look where that got us.

Don't get me wrong, I have nothing against India, but what works in India does not mean that it will work in SA.
 
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