The Independent Communications Authority of South Africa (ICASA) said today (30 March 2012) that wholesale ADSL IPConnect prices will be dropped by 30% on 1 April 2012.
ICASA said in its local loop unbundling document (released on 30 November 2011) that it “will engage with industry to reduce the price of Telkom’s IPConnect (IPC) service. This will be from 31 March 2012”.
The regulator said that the reduction in the IPConnect product is expected to have four effects:
- Increase the margins available for ISPs in the provision of services, thereby stimulating innovation and increased investment
- Space for retail price reductions linked to the reduction in their single largest input cost – the IPConnect product
- An increase in take-up of fixed-line ADSL (broadband) services over time based on more competitive prices and improved customer choice
- An increase in the utilisation of existing fixed line access
ICASA added that they will work with all stakeholders to ensure the implementation of a Bitstream product, with a clear and concise ordering specifications system, by November 2012.
“Further options will be explored at a later date, taking into account the financial and technical viability of such as well as dynamics within the market for the provision of broadband services,” said ICASA.
Telkom was contacted for details about the planned ADSL IPC price cuts, but the company referred questions related to IPC to ICASA.