Internet Solutions believes that Telkom’s IP Connect charge has created a severe bottleneck which limits the growth of broadband services in South Africa.
This is according to Greg Montjoie, the executive for carrier and connectivity at Internet Solutions.
IP Connect (IPC) is a wholesale product which now falls under Openserve, Telkom’s wholesale and networks division. To offer DSL services, Internet service providers must buy IPC capacity.
The roll-out of fibre and fixed-LTE services in the country has provided South Africans with broadband alternatives that are not based on the IPC model.
South Africans will continue to sign up for DSL alternatives, and Montjoie said they anticipate significant growth in South Africa’s broadband subscriber base.
“These alternatives are also at significantly faster speeds, meaning broadband users can experience high-speed Internet,” said Montjoie.
This can only be good for the country as users’ ability to innovate, communicate, and explore new content and services will grow – thanks to fast broadband access, he said.
As for DSL, Montjoie said there will be a slight decline in subscribers, but the drop in the total number of broadband subscribers will be offset by people signing up for alternative services.
“We do feel with the right level of investment in the DSL network, and the use of new technologies, there will be life in DSL for many years to come,” said Montjoie.