Telkom has reduced the price of its wholesale Internet Protocol (IP) Connect product, the one Internet service providers use to access its broadband digital subscriber line (DSL) network, by 15%.
IP Connect fees have a direct impact on DSL prices in South Africa, with ISPs usually quick to pass on any reductions in the rates to their subscribers in the form of lower bandwidth charges.
The new prices will take effect on 1 February.
This announcement follows a 5% “free” IP Connect bandwidth allowance that was offered by Telkom’s wholesale division on a temporary basis from 1 October 2013. Not all ISPs took up the offer, Telkom said.
“Telkom has now decided to convert the above allowance into a permanent price reduction. This, together with an additional 10% price reduction, means that wholesale customers will receive an effective 15% price reduction on all new and existing IP Connect capacity procured from Telkom as from 1 February,” it said.
“This latest price reduction must be seen against the backdrop of the 30% price reduction that Telkom announced on 1 April 2012 and the 8% price reduction implemented on 17 October 2013. Taken cumulatively, and considering this latest price reduction, Telkom has given effective price reductions of approximately 53% over the last two years.” — (c) 2014 NewsCentral Media