Telkom has historically been a follower when it comes to cutting broadband prices, but the fixed-line operator looks determined to lead the charge in 2013 with aggressive price cuts from its Internet service provider (ISP) business, Telkom Internet, whose new uncapped consumer broadband prices significantly undercut those of the MultiChoice-owned MWeb, its biggest rival.

Telkom Internet will lower the prices on its uncapped fixed-line broadband offerings with effect from 1 February, the fixed-line operator said on Tuesday.

“Customers can look forward to price reductions of up to 40% for consumer uncapped products and up to 35% for business uncapped products depending on the relevant package,” the company said in a statement.

For consumers, Telkom’s “Do” uncapped 1Mbit/s data-only product now costs R199/month, from R219 previously. With broadband line rental included, the price declines from R349/month to R329/month, according to Telkom.

Price cuts for uncapped higher-speed connections are far more aggressive. A 4Mbit/s uncapped data-only product will cost R369/month from February, from R699 now. For 10Mbit/s customers, the price tumbles from R1 399/month to R699.

These prices significantly undercut MWeb, which charges retail consumers R539/month for a 4Mbit/s data-only product against Telkom Internet’s new price of R369/month. For 10Mbit/s, MWeb’s price is R999/month vs Telkom’s new price of R699/month.

The decreased prices follow Telkom’s introduction of a ‘soft cap’ earlier this month in terms of which customers who reach their Internet cap are no longer be limited to local data only.

Prices are also being cut for Telkom’s business customers. A data-only option for 10Mbit/s lines falls from R3295/month to R2 399.

Telkom Business MD Brian Armstrong said Internet products for enterprise customers now offered improved performance for business traffic, adding that the value-added services on business uncapped offers had been improved. More advanced business features are planned for the coming months. — (c) 2013 NewsCentral Media

[table id=16 /]

[table id=18 /]