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Telkom’s wholesale company, Openserve, has announced an IP Connect price cut of up to 32%.
“Depending on the IPC capacity purchased, ISPs can now benefit from price reductions of up to 32%, effective from 1 June 2017,” the wholesale division wrote in a statement.
“We are committed to our journey of making broadband more affordable in South Africa. We firmly believe that by stimulating the growth of fixed broadband in South Africa, we are contributing to economic growth,” said sales and marketing chief Prenesh Padayachee.
The Openserve IP connect price cut of up to 32% should filter down to consumers in the latter half of the year
The IP Connect service is required by ISPs who want to make use of Telkom’s network, being a significant cost for service providers. Openserve has been cutting the IP Connect costs over the years though, in line with a 2013 Competition Commission ruling.
Traditionally, the price cuts result in savings for consumers or users getting more data for their buck.
We’ve contacted several leading service providers to find out whether this will be the case again, and will update the article when we receive responses.
Update, 1pm, 18 May: MWEB has responded, telling Memeburn that it was “still reviewing the impact of the changes”.
Update, 12:05pm, 19 May: Telkom has also reacted to the price cut, not quite revealing its hand just yet.
“We continuously review our products and services to offer our customers even more value. We hope to announce some developments in this regard in the coming months,” said spokesperson Jacqui O’Sullivan.