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
      South Africa is behind its neighbours on the plumbing of digital IDs

      South Africa is behind its neighbours on the plumbing of digital IDs

      11 September 2026
      South Africa to extradite US cyberfraud-gang suspects to US

      South Africa to extradite cyberfraud-gang suspects to US

      11 September 2026
      Newspaper group Caxton deploys AI editors

      Newspaper group Caxton deploys AI copy editors

      11 September 2026
      So, who exactly will buy Apple's R50 000 iPhone Duo

      Why Apple can’t tell you who its R50 000 iPhone is for

      11 September 2026
      'There are no adults in the room': the AI safety exodus

      ‘There are no adults in the room’: the AI safety exodus

      11 September 2026
    • World
      'This is not circular': Jensen Huang defends $3.5-billion MediaTek deal

      ‘This is not circular’: Jensen Huang defends $3.5-billion MediaTek deal

      2 September 2026
      AI-generated music banned from Australian charts

      AI-generated music banned from Australian charts

      26 August 2026
      Traders brace for a R4.5-trillion swing in Nvidia's value

      Traders brace for a R4.5-trillion swing in Nvidia’s value

      25 August 2026
      Russia building its own Starlink - and faster than expected - Vadym Skibitskyi

      Russia building its own Starlink – and faster than expected

      11 August 2026
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
    • In-depth
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      Meet the CIO | Shoprite's Chris Shortt on what a supermarket becomes

      Meet the CIO | Shoprite’s Chris Shortt on what a supermarket becomes

      9 September 2026
      Rubicon's EV charging network is profitable - and growing fast - Watts & Wheels

      Rubicon’s EV charging network is profitable – and growing fast

      8 September 2026
      Winstone Jordaan on building a national EV charging network

      Winstone Jordaan on building a national EV charging network

      2 September 2026
      Watts & Wheels S1E8: 'Tesla lands in Africa, just not here'

      Watts & Wheels S1E8: ‘Tesla lands in Africa, just not here’

      24 August 2026
      TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

      TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

      14 August 2026
    • Opinion
      The fragile joint in the Capitec machine - Pambos Soteriades

      The R197-billion market the banks can’t reach

      25 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      Management consulting as we know it is over

      21 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      The most dangerous customer is the quiet one

      10 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      South African tech’s compounding debt problem

      29 July 2026
      The fragile joint in the Capitec machine - Pambos Soteriades

      Best network, worst vibes: the puzzle of SA telecoms

      20 July 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • 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
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • 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
    Get breaking news on 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

    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


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

    Related Posts

    Telkom's prepaid growth is running on credit - Serame Taukobong

    Telkom’s prepaid growth is running on credit

    3 August 2026
    Openserve hits back in fibre ISP row

    Openserve hits back in fibre ISP row

    20 July 2026
    Openserve launches its own ISP, rattling wholesale partners

    Openserve launches its own ISP, rattling wholesale partners

    13 July 2026
    Company News
    Why businesses are moving n8n onto their own servers - Domains.co.za

    Why businesses are moving n8n onto their own servers

    11 September 2026
    Nitda, NDPC and Galaxy Backbone back CyFrica 2026

    Nitda, NDPC and Galaxy Backbone back CyFrica 2026

    11 September 2026
    Can an online school produce a scientist? CambriLearn has an independent answer

    Can an online school produce a scientist? CambriLearn has an independent answer

    9 September 2026
    Opinion
    The fragile joint in the Capitec machine - Pambos Soteriades

    The R197-billion market the banks can’t reach

    25 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    Management consulting as we know it is over

    21 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    The most dangerous customer is the quiet one

    10 August 2026

    Subscribe to Updates

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

    Latest Posts
    South Africa is behind its neighbours on the plumbing of digital IDs

    South Africa is behind its neighbours on the plumbing of digital IDs

    11 September 2026
    South Africa to extradite US cyberfraud-gang suspects to US

    South Africa to extradite cyberfraud-gang suspects to US

    11 September 2026
    Newspaper group Caxton deploys AI editors

    Newspaper group Caxton deploys AI copy editors

    11 September 2026
    Why businesses are moving n8n onto their own servers - Domains.co.za

    Why businesses are moving n8n onto their own servers

    11 September 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • 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}