Telkom’s wholesale division has announced cuts of up to 63% across its product range, including fibre broadband access, IP Connect, resell digital subscriber lines, metro Ethernet and its SAIX access offerings.
This will be the latest in a recent series of price reductions for Telkom’s IP connect product which is used by internet service providers. According to a statement by Telkom, the price of IP Connect has now been effectively halved over the last 18 months.
The price cuts are effective as of 1 May 2015 and Telkom’s wholesale customers can expect the following price adjustments:
• Rate reductions of up to 10% on the wholesale fibre broadband access product range
• Price adjustments of between 6% and 25% across the SAIX product range
• Tariff reductions of between 1,4% and 63% across the IP Connect product range
• Tariff reductions of between 35% and 40% across the Metro Ethernet product range
“Telkom has chosen a clear path to democratise data access to all South Africans. We believe that these major price adjustments and our renewed focus on value will go far in serving our customers, the industry and, ultimately, socioeconomic development of South Africa,” said Telkom’s MD of wholesale services Prenesh Padayachee.
In addition to these cuts Telkom is also reviewing the price of Digital Subscriber Line access and normal phone line rental.
According to Padayachee the prices for Telkom’s copper-based products are under review, and they will hopefully be able to reveal reviewed prices in the next few months.
Telkom’s wholesale service business is “positioning itself in order to service an exponentially increasing demand for copper and fibre-based broadband services”.
“To this end, Telkom wholesale services continues to invest in new generation broadband access technologies including fibre to the home and business which is offered on an open-access basis to other Internet service providers and … [is] aimed at delivering even higher speeds to the industry and driving demand among end consumers for rich media content.”