Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      A single Musk super-company may be taking shape - Elon Musk

      A single Musk super-company may be taking shape

      30 January 2026
      Canal+ concedes Showmax 'not a commercial success'

      Canal+ concedes Showmax ‘not a commercial success’

      29 January 2026
      Canal+ eyes billions in cost savings from MultiChoice deal

      Canal+ eyes billions of rand in cost savings from MultiChoice deal

      29 January 2026
      Cloud adoption the weak link in SA's digital government push: Microsoft - Vukani Mngxati

      Cloud adoption the weak link in SA’s digital government push: Microsoft

      29 January 2026
      Nedbank CIO Ray Naicker resigns

      Nedbank CIO Ray Naicker resigns

      29 January 2026
    • World
      Apple acquires audio AI start-up Q.ai

      Apple acquires audio AI start-up Q.ai

      30 January 2026
      SpaceX IPO may be largest in history

      SpaceX IPO may be largest in history

      28 January 2026
      Nvidia throws AI at the weather

      Nvidia throws AI at weather forecasting

      27 January 2026
      Debate erupts over value of in-flight Wi-Fi

      Debate erupts over value of in-flight Wi-Fi

      26 January 2026
      Intel takes another hit - Intel CEO Lip-Bu Tan. Laure Andrillon/Reuters

      Intel takes another hit

      23 January 2026
    • In-depth
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
    • TCS
      Watts & Wheels S1E2: 'China attacks, BMW digs in, Toyota's sublime supercar'

      Watts & Wheels S1E2: ‘China attacks, BMW digs in, Toyota’s sublime supercar’

      23 January 2026

      TCS+ | Why cybersecurity is becoming a competitive advantage for SA businesses

      20 January 2026
      Watts & Wheels S1E2: 'China attacks, BMW digs in, Toyota's sublime supercar'

      Watts & Wheels: S1E1 – ‘William, Prince of Wheels’

      8 January 2026
      TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

      TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

      12 December 2025
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
    • Opinion
      Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

      Why Elon Musk’s Starlink is a ‘hard no’ for me

      26 January 2026
      South Africa's new fibre broadband battle - Duncan McLeod

      South Africa’s new fibre broadband battle

      20 January 2026
      AI moves from pilots to production in South African companies - Nazia Pillay SAP

      AI moves from pilots to production in South African companies

      20 January 2026
      South Africa's new fibre broadband battle - Duncan McLeod

      ANC’s attack on Solly Malatsi shows how BEE dogma trumps economic reality

      14 December 2025
      South Africa's new fibre broadband battle - Duncan McLeod

      Netflix, Warner Bros deal raises fresh headaches for MultiChoice

      5 December 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Telkom price cuts: ISPs react

    Telkom price cuts: ISPs react

    By Sunil Gopal24 April 2015
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Tim Wyatt-Gunning
    Tim Wyatt-Gunning

    Internet service providers (ISPs) have adopted a wait-and-see attitude about the wholesale broadband price cuts of up to 63% announced by Telkom on Thursday.

    Industry body, the Internet Service Providers’ Association (Ispa), says the reductions are a result of a settlement reached between Telkom and the Competition Commission in 2013 regarding the fixed-line operator’s previous anticompetitive behaviour.

    Telkom agreed to pay a R200m penalty and to “functionally separate” its retail and wholesale divisions and adhere to pricing commitments for the next five years.

    It also agreed that its future conduct would be monitored.

    The agreement formed part of a broad-ranging settlement with the commission over abuses that took place between 2005 and 2007.

    The settlement package also included an admission of guilt by Telkom and a commitment to “transparent transfer pricing” to ensure “nondiscriminatory service provision” to its retail division and to ISPs.

    However, Prenesh Padayachee, the MD of Telkom’s wholesale services business, says the price reductions go beyond the Competition Commission settlement agreement.

    Ispa has welcomed the move by Telkom, saying that both ISPs and customers will benefit.

    Tim Wyatt-Gunning, CEO of WebAfrica, says ISPs met with Telkom last week and that all information about the new prices was delivered verbally only.

    “There are a lot of unanswered questions and until we have a full written description of the detail, it would be premature to comment since we can’t make any decisions about our ADSL pricing and packages. The devil, as ever, is in the detail,” Wyatt-Gunning says.

    He says it is unfortunate that Telkom recently increased line rental charges.

    “I think it’s a shame that Telkom chose to increase line rental, because that’s the real barrier to making more South Africans consider getting a fixed line,” he says.

    “IP Connect pricing is a very significant component of an ISP’s costs, but before people can consider an ISP’s offering, they need to be able to afford ‘step one’, which is low-cost line rental.”

    IP Connect — a big input cost for ISPs — is one of the wholesale charges that is being cut by Telkom.

    Crystal Web CEO Shaun Kaplan says, too, that it’s a pity the increases were coupled with an increase in the analogue line rentals.

    “Price reductions result in either the same or similar services offered at a lower price, or an overall better quality of broadband in South Africa,” Kaplan says.

    “We hope that the balance of the market is shifted towards quality over cheap. ISPs have been calling for IPC reductions in order to offer a better quality of service in the market.” Although he welcomes the price reductions, he is also waiting for the details.

    If the cost reductions are indeed significant, it will lead to a more competitive industry and lead to lower fees for consumers, he says.

    Greg Montjoie, executive for connectivity at Dimension Data’s Internet Solutions, says Telkom’s price cuts “will not only have an impact on DSL (digital subscriber line) pricing, but also on the quality of service as the offer includes a commitment from Telkom to provide significantly increased bandwidth on IPC for a marginal increase in cost to the ISP”.

    “We anticipate some ISPs may have to make significant investments in international bandwidth to cater for the increased IPC demand,” Montjoie says.

    “It must be remembered that the Telkom IPC costs are only a portion of the total cost to deliver a DSL service to the market and because of this we don’t anticipate ISPs will be able to pass an equivalent percentage discount to clients.

    “Although ISP fees should decrease and this will allow further penetration in the market, the cost of the line rental is still prohibitive for some and certainly a barrier to entry for many,” he says.

    “However, with the anticipated increase in quality and lowered costs, the ability for people  to use this as a medium to consume more online movies and media will certainly drive penetration and usage as people transition to online consumption of TV shows, movies and other media.”  — © 2015 NewsCentral Media



    Crystal Web Ispa Prenesh Padayachee Shaun Kaplan Tim Wyatt-Gunning WebAfrica
    WhatsApp YouTube Follow on Google News Add as preferred source on Google
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleTelkom announces sweeping price cuts
    Next Article Me&you mobile pricing revealed

    Related Posts

    Icasa

    South Africa set for telecoms licensing reset

    28 November 2025
    TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

    TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

    21 November 2025
    Seacom targeting Q4 2026 to lock in funds for huge new broadband system - Prenesh Padayachee

    Seacom targeting Q4 2026 to lock in funds for huge new broadband system

    11 November 2025
    Company News
    Smartphone affordability: South Africa's new economic divide - PayJoy

    Smartphone affordability: South Africa’s new economic divide

    29 January 2026
    The control layers that make AI usable in real-world logistics - Sterdts

    The control layers that make AI usable in real-world logistics

    29 January 2026
    WeBuyCars expands national footprint with two landmark supermarkets

    WeBuyCars expands national footprint with two landmark supermarkets

    28 January 2026
    Opinion
    Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

    Why Elon Musk’s Starlink is a ‘hard no’ for me

    26 January 2026
    South Africa's new fibre broadband battle - Duncan McLeod

    South Africa’s new fibre broadband battle

    20 January 2026
    AI moves from pilots to production in South African companies - Nazia Pillay SAP

    AI moves from pilots to production in South African companies

    20 January 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Apple acquires audio AI start-up Q.ai

    Apple acquires audio AI start-up Q.ai

    30 January 2026
    A single Musk super-company may be taking shape - Elon Musk

    A single Musk super-company may be taking shape

    30 January 2026
    Canal+ concedes Showmax 'not a commercial success'

    Canal+ concedes Showmax ‘not a commercial success’

    29 January 2026
    Canal+ eyes billions in cost savings from MultiChoice deal

    Canal+ eyes billions of rand in cost savings from MultiChoice deal

    29 January 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}