ADSL price cuts and data boost from Internet Solutions

Internet Solutions (IS) announced changes to the company’s wholesale and business DSL offerings today (25 April 2012), following the 30% reduction in Telkom’s IP Connect (IPC) charge recently announced by the Independent Communications Authority of South Africa.

“The IPC charge is the single largest cost incurred by ISPs when provisioning fixed broadband services, as it accounts for 60–70% of the total cost,” explains Sean Nourse, executive for connectivity at IS.

“While this means that a 30% reduction in the IPC charge does not equate to a 30% reduction in the overall cost of DSL, IS is offering our business customers and reseller channel significantly more in terms of value and savings,” Nourse said.

Following this announcement IS will now offer direct business DSL customers, value channel partners and wholesalers on the IS Extreme per GB capped service additional bandwidth at the same price.

“For example, customers who have the 5GB offering will be bumped up to 10GB as we are passing the direct benefit of the IPC cut on to them in the form of additional bandwidth,” said Nourse.

“This will be done on a sliding scale as we aim to pass on more than 30% in savings or value wherever we can,” Nourse said. “IS customers on the Cruiser uncapped offering will enjoy significant discounts of up to 49% on the 1024 Kbps service.”

Nourse said that they have passed on reduced wholesale rates to their reseller channel, “So consumers and end-users should expect to see this filter through in the coming weeks.”

“Our customers on uncapped offerings of 1Mbps or lower will enjoy a decrease in rates of up to 53%, while uncapped DSL clients on higher speed packages, which are generally prone to higher usage, will enjoy significant improvements when using bigger volumes of data instead of reduced rates,” Nourse said.

For example, the IS 4Mbps uncapped service has been upgraded to allow up to 10Mbps. According to Nourse, this offers customers value “in excess of the discount received from Telkom.”

Nourse went on to explain that IS is not offering cost reductions across the board as bandwidth-hungry users get greater value by receiving more bandwidth and an improved service.

“In the products where there is fair use we can pass on both service and cost benefits,” he says. “In the wholesale market we are also offering some aggressive price discounts so that our partners can go out there and hopefully gain increased market share.”

IS are also using the 30% saving to reinvest in their network and make changes to improve network efficiency and performance. “We have just deployed a PoP IPC node in Cape Town, which means that all Cape Town DSL traffic no longer has to be routed up to Johannesburg,” Nourse said.

“This means that a Cape Town customer communicating with another user in the same region will enjoy a faster service and better quality,” Nourse said.

IS will also be launching a Durban PoP IPC node in the next few months, which the company said will improve network quality and performance in that region.

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ADSL price cuts and data boost from Internet Solutions