Telkom has said that “Telkom Wholesale is striving to find ways of reducing its costs and prices, including the price of IPC (wholesale ADSL)”.
Many Internet Service Providers have asked for a reduction in IPC price to accommodate the increase in average ADSL data use.
IPC is currently the biggest cost to deliver ADSL data – around four times the cost of international bandwidth – according to ISPs.
“Telkom should have to justify why these charges are so high, when other providers who have real competition are charging a fraction of their price,” said Afrihost director Greg Payne.
Telkom responded, saying that Telkom Wholesale has been able to pass the benefits of its cost optimising strategy on to its customers by reducing the price of broadband connectivity through various price reduction initiatives.
“This is evidenced by the 8% reduction in IPC prices in October 2013 and a further reduction of 15% in February 2014,” said Telkom’s Jacqui O’ Sullivan.
“The IPC price reduction of 23% since October 2013 is higher than what was required in terms of the Settlement Agreement that Telkom entered into with the Competition Commission in June 2013,” she added.
O’ Sullivan said in the spirit of further reducing the cost to communicate, Telkom Wholesale is striving to find ways of reducing its costs and prices, including the price of IPC.
“This will assist in increasing the uptake of fixed broadband connectivity in South Africa. We will communicate such price reductions to the market in due course.”