ADSL IPC price cut details emerge

An 8% cut in Telkom’s wholesale ADSL product, IP Connect (IPC), can be expected by mid-October 2013.

This is according to Telkom’s head of wholesale and networks, Bashier Sallie.

Sallie was answering a question during a panel discussion at Telkom’s Southern African Telecommunication Networks and Applications Conference (Satnac) at the Spier wine estate on Monday (2 September 2013).

He explained that under the terms of their settlement with the Competition Commission, Telkom has to implement rate cuts within 90 days after the confirmation of the agreement. IPC, in particular, has to be cut by 8%.

Since the agreement was confirmed by the Competition Tribunal on 18 July 2013, Sallie said that Telkom has to cut their wholesale rates by 8% by mid-October.

Bashier Sallie at SATNAC 2013

This follows Telkom’s recent announcement that it would increase the IPC capacity of operators by 5% from 1 October 2013.

According to Telkom, the free increase in IPC to its customers is independent of the price cuts mandated by its agreement with the Competition Commission.

Under the agreement, another two price cuts are expected to follow in the next two years. These form part of a 5-year pricing commitment that was estimated to yield R875-million in savings to customers.

More ADSL IPC news

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Telkom ADSL IPC price cuts coming: sources

Telkom’s forced ADSL price cuts: ISPs respond

Jan Vermeulen is a guest of Telkom at Satnac 2013