Telkom drops wholesale ADSL price

Telkom Wholesale has announced an effective 15% price reduction on its IP Connect (IPC) product offering with effect from 01 February 2014.

The IPC pricing dictates the price at which ISPs can resell Telkom’s broadband connectivity – mainly ADSL – to their customers.

This announcement follows the 5% free IPC bandwidth allowance that was offered by Telkom Wholesale on a temporary basis from 1 October 2013, despite the fact that not all Internet Service Providers had taken up the offering.

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 IPC Capacity procured from Telkom as from 01 February 2014.

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.

Says Telkom Managing Executive for Telkom Wholesale Services, Mr Casper Kondo Chihaka: ‚”I believe that this price reduction will further assist and enable ISPs to grow fixed broadband service offerings in South Africa. This is yet another significant contribution by Telkom to lower the cost of communication in line with Government’s objectives.

We are also hopeful that this price reduction will ultimately result in more affordable broadband price offerings for South African broadband consumers,‚” concludes Mr Chihaka.

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