Telkom slashes wholesale ADSL prices - TechCentral

Telkom slashes wholesale ADSL prices

Prenesh Padayachee

Prenesh Padayachee

Telkom’s wholesale division, Openserve, has announced it will cut the price of IP Connect (IPC), the platform that provides Internet service providers with access to its copper-based broadband ADSL network. The price cut should lead to lower retail prices.

Openserve is also taking a knife to the price of “dedicated access” services provided by its Saix division. The price cuts will take effect on 1 June.

“The new pricing structure for Saix dedicated access on average shows reductions of between 31% and 60%, depending on the specific product procured,” Openserve said in a statement.

“The entry-level pricing for IPC will be reduced by up to 57% to encourage further competition in the broadband market.”

The company said it expects the price cuts to “stimulate greater innovation and creativity among Internet service providers to the benefit of consumers”.

Openserve was spun out of Telkom last year as a separate division answerable not only to its parent company but to other industry players on a fair and transparent basis.

News of the price cuts comes less than a week after TechCentral first reported that Openserve would peer at the independent Internet exchange point NAPAfrica, owned and operated by data centre provider Teraco.

“Our peering at NAPAfrica is a clear indication that we will do what is necessary to reduce bandwidth costs while improving overall network performance,” said Openserve chief sales and marketing officer Prenesh Padayachee in a statement.

“Through the peering at NAPAfrica, Openserve has joined its industry peers at the facility where they operate from, thereby negating the need for expensive dedicated links to connect to each peer individually. This enables Openserve to enhance its cost efficiency and at the same time advance the growth of Africa’s biggest neutral Internet exchange. It further helps reduce latency on the internet connectivity of consumers by bringing content closer to them and substantially improving their online experience,” said Padayachee.

The looming wholesale price cuts and the decision to peer at NAPAfrica signal “a break from the past by formalising the autonomy that is necessary to serve all our clients on an equitable and transparent basis”, said Padayachee.  — © 2016 NewsCentral Media

4 Comments

  1. A ray of light in a country with an otherwise pretty gloomy outlook. Depending on how that works out in my pocket, I will probably buy a higher connection speed.

  2. Brilliant! They have dropped the price just as they dropped my entire ADSL service…only in South Africa!
    Telkom is engaged in some kind of maintenance at Edenvale exchange for 3 days now WITHOUT issuing a maintenance ref and just leaves its local ADSL customers to struggle with no proper explanation or even the courtesy of an apology. Their local managers are all running for cover with one leaving his phone off the hook for hours on end.
    They are a bloody disgrace and if it wasn’t for being a state monopoly would have been toast 30 years ago!
    Yesterday I went to their so-called shop at Eastgate for more info and found a sullen collection of incompetents who wouldn’t know a maintenance ref if it got up and bit them on the leg!

  3. Its lovely to reduce prices but what’s the point if you have no connection? Telkom does not respond to tech faults . PLEASE Telkom improve your customer service!!!!