Browsing: Telkom

Time to unbundle the local loop

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SA consumers got their first taste of a broadband price war last week when a small Internet service provider, Afrihost, slashed the price of bandwidth to below cost. It’s a promising start, but matters little until Telkom is forced to open its network to rivals. It was a ballsy move. Last week, Afrihost cut the cost of fixed-line bandwidth on broadband digital subscriber lines to just R29/GB. To put that in perspective, the average selling price for this type of bandwidth has, until now, been R50-R70/GB

Why broadband in SA is so expensive

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I know that this article is going shock you, but not in the way you expect, so buckle up. I have oversimplified the piece, but its essence is as true as you could wish for. The other day, I found a Telkom — in those days Posts & Telecommunications — internal “newspaper” called Postel, dated December 1982. The front page article — coincidentally written by myself at the time — described a 40% cut in international data communication tariffs based on X.75 packet-switching. Before the 40% cut, it cost, in today’s money, more than R10 000 to send 1MB of data. After the 40% cut, it cost only R6 000/MB — a bargain, with demand exceeding supply

Icasa summons operators over tariffs

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Telecommunications industry regulator, the Independent Communications Authority of SA (Icasa), has summoned SA’s incumbent operators, including Telkom, Vodacom and MTN,…