Telkom announces sweeping price cuts - TechCentral

Telkom announces sweeping price cuts

Prenesh Padayachee

Prenesh Padayachee

Telkom’s wholesale services division has announced sweeping cuts of up to 63% across its product range, including fibre broadband access, IP Connect (used by Internet service providers), resell digital subscriber lines, metro Ethernet and its Saix access offerings.

The pricing announcement is the latest in a series of price reductions of Telkom’s IP Connect product, which has now effectively been halved over the past 18 months, Telkom said in a statement.

Effective 1 May 2015 Telkom’s wholesale customers can expect the following price adjustments:

  • Rate reductions of up to 10% on the wholesale fibre broadband access product range
  • Price adjustments of between 6% and 25% across the Saix product range
  • Tariff reductions of between 1,4% and 63% across the IP Connect product range
  • Tariff reductions of between 35% and 40% across the metro Ethernet product range

“Telkom has chosen a clear path to democratise data access to all South Africans. We believe that these major price adjustments and our renewed focus on value will go far in serving our customers, the industry and, ultimately, socioeconomic development of South Africa,” said Telkom’s MD of wholesale services Prenesh Padayachee in a statement.

Telkom said its wholesale services business is “positioning itself in order to service an exponentially increasing demand for copper and fibre-based broadband services”.

“To this end, Telkom wholesale services continues to invest in new generation broadband access technologies including fibre to the home and business which is offered on an open-access basis to other Internet service providers and … [is]aimed at delivering even higher speeds to the industry and driving demand among end consumers for rich media content.”  — © 2015 NewsCentral Media


  1. Andrew Fraser on

    That is the impact of true competition. For the first time smaller companies are fighting for last mile fixed line connection (vumatel, DFA etc.) with alternatives for wholesale access (IS, Neotel).

    Good news for consumers.

  2. Greg Mahlknecht on

    Great stuff! Now we need an ISP to spill the beans on how much of a price break they’re getting so we can call out those ISPs not passing the savings on.

  3. > which is offered on an open-access basis to other Internet service providers

    Um. Yes. Ja well no fine. So why did you have tantrums about the very thought of LLU, Telkom?

    However, I must congratulate you for eventually starting to see the light. Revenue = Volume x Price. You can get a better increase in Revenue by a drop in Price which brings an increase in Volume than you can by simply an increase in Price, which usually means a drop in Volume.

  4. Remember in 2000 when government were going to unbundle Telkom and become more competitive! Well we still waiting. Still not a pretty picture after 15 years. The rest of Africa has gone thru quantum leaps while SA went from crawl to the first few steps. The same with government all talk about Green alternative energy by trying to hold everyone down on Eskom and not opening the market for cheaper options! The Greedy ANC Government continue in their old National Parties ideals. Its Political Apartheid!!

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