{"id":87575,"date":"2013-09-26T10:14:16","date_gmt":"2013-09-26T08:14:16","guid":{"rendered":"http:\/\/mybroadband.co.za\/news\/?p=87575"},"modified":"2013-09-26T10:15:42","modified_gmt":"2013-09-26T08:15:42","slug":"adsl-ipc-cuts-disappointing-isps","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/adsl\/87575-adsl-ipc-cuts-disappointing-isps.html","title":{"rendered":"ADSL IPC cuts \u201cdisappointing\u201d: ISPs"},"content":{"rendered":"<p>The reduction in IP Connect (IPC) and other rates recently announced by <a title=\"Telkom\" href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/227037-Telkom\">Telkom<\/a> are not nearly enough, and are also not the only ADSL costs that need attention, Internet service providers (ISPs) have told MyBroadband.<\/p>\n<p>This comes after Telkom announced price cuts to a number of its wholesale services:<\/p>\n<ul>\n<li>IP Connect by 8%;<\/li>\n<li>Diginet by 4%;<\/li>\n<li>CHIPAC by 4%;<\/li>\n<li>Ethernet Express by 6%;<\/li>\n<li>Metro Clear by 6%;<\/li>\n<li>International private leased circuits (IPLCs) by 25%; and<\/li>\n<li>SAIX Dedicated Access products by 10%<\/li>\n<\/ul>\n<p>These effective tariff reductions would kick in on 17 October 2013, Telkom said.<\/p>\n<p>When asked which of the rate reductions apply to them and what effect it would have on retail prices, <a title=\"Afrihost\" href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/307435-Afrihost\">Afrihost<\/a>, <a title=\"Mweb\" href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/226947-MWeb\">Mweb<\/a>, <a title=\"OpenWeb\" href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/226986-Openweb\">OpenWeb<\/a>, and <a title=\"Cybersmart\" href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/226185-Cybersmart\">Cybersmart<\/a> had the following to say.<\/p>\n<div id=\"attachment_79643\" style=\"width: 610px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-79643\" class=\"size-full wp-image-79643\" alt=\"Gian Visser Afrihost\" src=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2013\/06\/Gian-Visser-Afrihost-2.png\" width=\"600\" height=\"400\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2013\/06\/Gian-Visser-Afrihost-2.png 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2013\/06\/Gian-Visser-Afrihost-2-250x166.png 250w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><p id=\"caption-attachment-79643\" class=\"wp-caption-text\">Gian Visser Afrihost<\/p><\/div>\n<h3 class=\"my-4\">Afrihost<\/h3>\n<p>Afrihost CEO <a title=\"Gian Visser\" href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/301335-Gian-Visser\">Gian Visser<\/a> said that the price cuts don\u2019t actually apply directly to them as they buy their services from <a title=\"MTN\" href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/303631-MTN-Business\">MTN<\/a>.<\/p>\n<p>\u201cHaving said that, the only wholesale service cut that will apply to MTN\u2019s ADSL cost is the IPC cut of 8%,\u201d Visser said.<\/p>\n<p>He said that for a wholesale rate cut to have a significant effect on the ADSL industry, Telkom needs to cut IPC costs by at least another 40%, remove the need to pay a monthly rental for voice lines to get ADSL, and dramatically reduce the ADSL monthly line rental fees.<\/p>\n<p>\u201cTo be honest these cuts by Telkom are disappointing,\u201d Visser said.<\/p>\n<p>He said that the simple fact is the biggest cost by far to consumers is the ADSL and voice line rental costs which go directly to Telkom.<\/p>\n<p>\u201cAnd sadly most of the remainder [consumers] pay also goes to Telkom through their IPC costs that they charge wholesale ISPs,\u201d Visser said.<\/p>\n<p>\u201cBottom line: Telkom needs to pass through bigger reductions in all areas if they ever hope that ADSL will grow in the same way that mobile is,\u201d Visser said.<\/p>\n<div id=\"attachment_78925\" style=\"width: 610px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-78925\" class=\"size-full wp-image-78925\" alt=\"Derek Hershaw Mweb\" src=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2013\/05\/Derek-Hershaw-Mweb.png\" width=\"600\" height=\"400\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2013\/05\/Derek-Hershaw-Mweb.png 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2013\/05\/Derek-Hershaw-Mweb-250x166.png 250w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><p id=\"caption-attachment-78925\" class=\"wp-caption-text\">Derek Hershaw<\/p><\/div>\n<h3 class=\"my-4\">Mweb<\/h3>\n<p>The boss of Mweb ISP, <a title=\"Derek Hershaw\" href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/226207-Derek-Hershaw\">Derek Hershaw<\/a>, agreed with Visser.<\/p>\n<p>\u201cIf Telkom doesn\u2019t start doing something urgently about the costs of ADSL line rentals and the compulsory voice line rentals, then ADSL will become less and less relevant in the SA broadband market,\u201d Hershaw said.<\/p>\n<p>Hershaw said that in all likelihood Mweb will use the savings on IPC costs to buy additional IPC capacity. There is a smaller possibility that they might adjust pricing on some of their high-end products, Hershaw said.<\/p>\n<h3 class=\"my-4\">Line rentals<\/h3>\n<p>Following the announcement of the IPC rate cuts, Telkom also revealed plans to begin upgrading ADSL customers to higher speeds for free.<\/p>\n<p>When asked about this, Visser said they have not yet received specifics from Telkom.<\/p>\n<div id=\"attachment_35102\" style=\"width: 610px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-35102\" class=\"size-full wp-image-35102\" alt=\"Tim Wyatt-Gunning\" src=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2011\/10\/Tim-Wyatt-Gunning1.jpg\" width=\"600\" height=\"360\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2011\/10\/Tim-Wyatt-Gunning1.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2011\/10\/Tim-Wyatt-Gunning1-100x60.jpg 100w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2011\/10\/Tim-Wyatt-Gunning1-185x111.jpg 185w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><p id=\"caption-attachment-35102\" class=\"wp-caption-text\">Tim Wyatt-Gunning<\/p><\/div>\n<h3 class=\"my-4\">Web Africa<\/h3>\n<p>As with Afrihost and Mweb, Web Africa CEO <a title=\"Tim Wyatt-Gunning\" href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/227048-Tim-Wyatt-Gunning\">Tim Wyatt-Gunning<\/a> said that only the IPC rate cut affects their ADSL products.<\/p>\n<p>\u201cSince we have known about these meagre reductions for several months we have already built them into our pricing models, some of which we are still to implement,\u201d Wyatt-Gunning said.<\/p>\n<div id=\"attachment_27075\" style=\"width: 610px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-27075\" class=\"size-full wp-image-27075\" alt=\"Keoma Wright\" src=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2011\/06\/Keoma-Wright-Openweb.jpg\" width=\"600\" height=\"325\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2011\/06\/Keoma-Wright-Openweb.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2011\/06\/Keoma-Wright-Openweb-100x54.jpg 100w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2011\/06\/Keoma-Wright-Openweb-185x100.jpg 185w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><p id=\"caption-attachment-27075\" class=\"wp-caption-text\">Keoma Wright &#8211; Openweb founder<\/p><\/div>\n<h3 class=\"my-4\">OpenWeb<\/h3>\n<p>OpenWeb chief <a title=\"Keoma Wright\" href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/301363-Keoma-Wright\">Keoma Wright<\/a> also said that the IPC price cut is very small.<\/p>\n<p>\u201cWe do believe consumers will see some benefit from this in performance if not on price,\u201d Wright said. \u201cNaturally, we would like to have seen a price drop of at least 50% so that we can pass a proper saving onto our clients.\u201d<\/p>\n<div id=\"attachment_69338\" style=\"width: 610px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-69338\" class=\"size-full wp-image-69338\" alt=\"Laurie Fialkov\" src=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2013\/01\/Lauri-Fialkov-2.jpg\" width=\"600\" height=\"400\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2013\/01\/Lauri-Fialkov-2.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2013\/01\/Lauri-Fialkov-2-100x66.jpg 100w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2013\/01\/Lauri-Fialkov-2-185x123.jpg 185w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2013\/01\/Lauri-Fialkov-2-250x166.jpg 250w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><p id=\"caption-attachment-69338\" class=\"wp-caption-text\">Laurie Fialkov<\/p><\/div>\n<h3 class=\"my-4\">Cybersmart<\/h3>\n<p>Cybersmart CEO <a title=\"Laurie Fialkov\" href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/278903-Laurie-Fialkov\">Laurie Fialkov<\/a> explained that the IPC rate cut is the biggest winner for them in terms of its impact on their customers.<\/p>\n<p>However, as with the other ISPs, he indicated that a much larger reduction is needed to be able to reduce prices to end-users.<\/p>\n<p>Instead, Fialkov said he will launch a new business-oriented product that Cybersmart has been planning in anticipation of an IPC cut.<\/p>\n<p>Regarding the other wholesale pricing reductions, Fialkov said that Telkom\u2019s IPLC tariffs are now in line with other large carriers.<\/p>\n<p>According to Fialkov, Cybersmart was offered these new tariffs 2 months ago two try and get them to renew their contract with Telkom.<\/p>\n<p>Despite being offered these lower rates earlier, Cybersmart will not be using Telkom\u2019s IPLC services because they compromised quality for price even before the latest round of cuts, Fialkov said.<\/p>\n<p>Vox Telecom declined to comment on which of the wholesale price cuts affect their ADSL products, and the significance of the cuts.<\/p>\n<h3 id=\"related\">More ADSL in South Africa news<\/h3>\n<p><a href=\"http:\/\/mybroadband.co.za\/news\/broadband\/87236-new-telkom-adsl-ipc-price-cuts-announced.html\"><strong>New Telkom ADSL IPC price cuts announced<\/strong><\/a><\/p>\n<p><a href=\"http:\/\/mybroadband.co.za\/news\/adsl\/85833-adsl-ipc-price-cut-details-emerge.html\"><strong>ADSL IPC price cut details emerge<\/strong><\/a><\/p>\n<p><a href=\"http:\/\/mybroadband.co.za\/news\/telecoms\/82499-telkom-competition-commission-settlement-confirmed.html\"><strong>Telkom Competition Commission settlement confirmed<\/strong><\/a><\/p>\n<p><a href=\"http:\/\/mybroadband.co.za\/news\/adsl\/87421-new-telkom-adsl-speeds-and-prices.html\"><strong>New Telkom ADSL speeds and prices<\/strong><\/a><\/p>\n<p><a href=\"http:\/\/mybroadband.co.za\/news\/adsl\/87278-free-adsl-speed-upgrades-from-telkom.html\"><strong>Free ADSL speed upgrades from Telkom<\/strong><\/a><\/p>\n<p><a href=\"http:\/\/mybroadband.co.za\/news\/adsl\/87160-cheapest-ever-capped-adsl-prices-in-sa.html\"><strong>Cheapest ever capped ADSL prices in SA<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Telkom\u2019s recently announced wholesale price cuts are not enough, according to Internet service providers<\/p>\n","protected":false},"author":15,"featured_media":85857,"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":[71,1669,2954,559,1988,35,19158,1263,4358,213,1261,3542,49,329],"class_list":["post-87575","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-adsl","tag-adsl-2","tag-afrihost","tag-cybersmart","tag-derek-hershaw","tag-gian-visser","tag-headline","tag-ip-connect-ipc","tag-keoma-wright","tag-laurie-fialkov","tag-mweb","tag-openweb","tag-tim-wyatt-gunning","tag-vox-telecom","tag-web-africa"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/87575"}],"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\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=87575"}],"version-history":[{"count":2,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/87575\/revisions"}],"predecessor-version":[{"id":87611,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/87575\/revisions\/87611"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/85857"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=87575"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=87575"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=87575"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}