Openserve, the wholesale and networks division of Telkom, recently announced price cuts and speed increases for its wholesale broadband products.
Internet service providers that use IP Connect, the Openserve wholesale ADSL offering, would see an effective 25% reduction in price.
Its Openserve Fibre Broadband (OFB) access portfolio will also see price cuts, along with speed increases — 2Mbps lines will be upgraded to 4Mbps, and 8Mbps lines to 10Mbps.
Both sets of adjustments will kick in on 1 August.
While one would expect wholesale price decreases to result in retail price cuts, Internet service providers in South Africa have warned in the past that it is not always so simple.
This is what they had to say about the most recent round of wholesale adjustments from Openserve.
Cybersmart chief technology officer Laurie Fialkov said that they will be aggressive on their fibre pricing.
However, on the ADSL front they will be less so.
Justin Hovener, senior product manager for carrier and connectivity at Vox said that they could not commit to price cuts by 1 August as their product creation takes a few weeks.
“Vox is planning the launch of exciting new ADSL products which will definitely benefit the customer’s pocket,” Hovener said.
“Our current Fat Pipe features, data rollover and ‘free midnight to 06:00’ will continue to support the new range.”
The new products are expected to launch in mid-August.
Vox also plans to further upgrade its IPC capacity across its national points of presence to provide a better experience for existing customers.
On the fibre front, Vox will be upgrading fibre to the home line speeds on its uncapped Openserve-based packages automatically.
This will be supported by a new fair usage policy (FUP), which will be crafted to allowing subscribers more data per usage tier. Since Vox uses the same FUP for ADSL, these changes will benefit them as well.
MWEB said that it has not made any decisions yet, as it is still working through the details about the planned price cuts it received from Openserve.
Afrihost has already announced that it will be cutting its Openserve fibre-to-the-home prices from next month, and will also add more capacity to its network.
Its planned price cuts are summarised in the table below.
|Afrihost Openserve Uncapped Prices|
|Service||Download Speed||Upload Speed||Price|
|Afrihost Openserve Capped Prices|
|Cap Size||Download Speed||Upload Speed||Price|