Telkom’s Openserve has announced IP Connect (IPC) price cuts, which will kick in on 1 June 2016.
This has raised the question: Will ADSL access (ADSL line rental) prices follow suit?
Telkom was asked whether the industry can expect DSL access price cuts from Openserve this year, but the company would not comment on the issue.
This leaves the question open to speculation, and South Africa’s largest Internet service providers are divided on the matter.
MWEB CEO Derek Hershaw said he does not expect any DSL or FTTH access price cuts from Openserve in 2016.
Webafrica’s Greg Wright concurred with Hershaw, saying they do not expect wholesale price cuts on Openserve ADSL and FTTH lines this year.
Axxess director Franco Barbalich was more positive, saying they expect to see a reduction across all services from Telkom – if the company wants to remain competitive.
“I think that other fibre network providers are putting pressure on Openserve, as there is no IPC costs involved when using their fibre networks,” said Barbalich.