Telkom has announced that it will reduce its IP Connect (IPC) costs by 15% last Friday, giving ISPs some breathing room in their pricing. The new pricing goes into effect on February 1st, 2014.
Telkom has steadily cutting IPC costs over the last few years, where in April 2012, the price has been slashed to 30% and in October 2013, the price came down to another 8%. In total, 53% of the costs for internet service providers has been reduce over the last 24 month.
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“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 the 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,” said Casper Kondo Chihaka, managing executive for Telkom Wholesale Services.
Meanwhile MWEB’s CEO, Derek Hershaw, explains that this latest announced reduction won’t benefit end users. He added that that MWEB hoped the increased line speeds would also see the IPC prices drop, which would effectively enable ISPs to let end users have uncapped ADSL accounts for their new lines without paying much more.