{"id":125024,"date":"2015-04-24T10:02:51","date_gmt":"2015-04-24T08:02:51","guid":{"rendered":"http:\/\/mybroadband.co.za\/news\/?p=125024"},"modified":"2015-04-24T10:04:10","modified_gmt":"2015-04-24T08:04:10","slug":"adsl-price-cuts-expected","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/adsl\/125024-adsl-price-cuts-expected.html","title":{"rendered":"ADSL price cuts expected"},"content":{"rendered":"

Telkom recently announced wholesale price reductions<\/strong><\/a> of up to 63% across its product range, including Wholesale Fibre Broadband Access, IP Connect, Resell DSL, Metro Ethernet, and SAIX dedicated access offerings.<\/p>\n

Internet service providers buy bandwidth on Telkom\u2019s last-mile access networks for DSL and fibre services through a product called Telkom IP Connect (IPC)<\/a>.<\/strong><\/p>\n

The size of the price reduction is determined by the volume of bandwidth purchased by ISPs, with smaller providers\u00a0set to benefit more than larger competitors.<\/p>\n

Telkom has also launched a promotion which allows ISPs to double the amount of IPC bandwidth they have \u201cfor an incremental cost\u201d.<\/p>\n

Companies with large volumes of IPC could lower their cost by 80%, after all reductions are\u00a0taken into account, according to Telkom.<\/p>\n

ISPs respond<\/h3>\n

Internet service providers welcomed the wholesale price cuts, and indicated that these savings will results in lower ADSL and VDSL prices and better service levels.<\/p>\n

Crystal Web CEO Shaun Kaplan<\/strong> said price reductions result in either the same or similar service offered at a lower price, or an overall better quality of service.<\/p>\n

Kaplan said Crystal Web is currently revisiting its pricing following\u00a0Telkom\u2019s announcement.<\/p>\n

Afrihost director Greg Payne<\/strong> said Telkom has passed on a \u201csmall real discount\u201d, but if ISPs are willing to increase their spend, they will get a lot more capacity.<\/p>\n

\u201cThis means that the per-GB rate of DSL data should come down, and ISPs should give uncapped users much more bandwidth,\u201d said Payne.<\/p>\n

He added that while they are waiting for final details from Telkom, Afrihost will definitely pass on the benefits to its clients.<\/p>\n

Cybersmart CEO Laurie Fialkov<\/strong> said the manner in which Telkom introduced the price cuts can pose challenges.<\/p>\n

\u201cTo get a significant price cut we have to pay up to 15% more per month. While this gives us far more bandwidth, using this bandwidth effectively can be a challenge,\u201d said Fialkov.<\/p>\n

He explained that it is like paying 15% more in a restaurant to get two steaks instead of one. Great if you are very hungry, but if you cannot eat two steaks it may be a waste.<\/p>\n

Fialkov also warned that Telkom\u2019s decision to give massive price cuts to small clients, and very small cuts to large clients, will disrupt the market.<\/p>\n

Openweb CEO Keoma Wright<\/strong> said they will be using the majority of the reduction to increase the quality of their network.<\/p>\n

\u201cWe will be ordering a large amount of bandwidth into the network on our Durban, Johannesburg, and Cape Town IPC nodes,\u201d he said. \u201cOnce live, clients will experience a much improved quality of service.\u201d<\/p>\n

Web Africa CEO Tim Wyatt-Gunning<\/strong> and MWEB CEO Derek Hershaw<\/strong> said they would only be able to comment after they have seen the full details of Telkom\u2019s planned price cuts.<\/p>\n

More on ADSL prices in South Africa<\/h3>\n

New MWEB fibre-to-the-home packages unveiled<\/strong><\/a><\/p>\n

Pricing shoot-out: Telkom DSL versus fibre-to-the-home<\/strong><\/a><\/p>\n

Best ADSL ISP in South Africa revealed<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Telkom recently announced big ADSL wholesale price cuts, and Internet service providers are expected to pass some of the savings on to consumers.<\/p>\n","protected":false},"author":23,"featured_media":108732,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[5],"tags":[71,1669,2954,559,2264,35,921,1263,4358,1261,30018,109,3542,329],"class_list":["post-125024","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-adsl","tag-adsl-2","tag-afrihost","tag-cybersmart","tag-derek-hershaw","tag-greg-payne","tag-headline","tag-ipc","tag-keoma-wright","tag-laurie-fialkov","tag-openweb","tag-shaun-kaplan","tag-telkom","tag-tim-wyatt-gunning","tag-web-africa"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/125024"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=125024"}],"version-history":[{"count":2,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/125024\/revisions"}],"predecessor-version":[{"id":125028,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/125024\/revisions\/125028"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/108732"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=125024"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=125024"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=125024"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}