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Telkom announces broadband price cuts

Martin Czernowalow
By Martin Czernowalow, Contributor.
Johannesburg, 23 Apr 2015
Telkom says price adjustments and its renewed focus on value will aid the socio-economic development of SA.
Telkom says price adjustments and its renewed focus on value will aid the socio-economic development of SA.

Telkom Wholesale Services today announced wholesale unit price reductions of up to 63% across its product range including wholesale fibre broadband access, IP Connect, Metro Ethernet and SAIX dedicated access offerings.

The announcement is the latest in a series of price reductions of Telkom's IP Connect product, which has now effectively been halved over the past 18 months.

"Telkom's R12 billion investment in our next-generation high-speed broadband network is ultimately to support SA's entire broadband ecosystem. This is about much more than just investing in technology. It is about investing in connectivity that will drive meaningful change in our country", says Telkom CTO Alphonzo Samuels.

Effective from 1 May 2015, 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; and
  • 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, the socio-economic development of SA," says Telkom MD of wholesale services Prenesh Padayachee.

According to Telkom, the company provides services to its wholesale customer base via the largest and most ubiquitous IP network in Africa and the company's wholesale services are being positioned to service an exponentially increasing demand for copper and fibre-based broadband services.

Thus, says Padayachee, 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 ISPs and multi-service access nodes initiatives. This is aimed at delivering even higher speeds to the industry and driving demand among end consumers for rich media content.

"Ultimately Wholesale division is enabling our resellers through its network and resell products to operate and compete successfully in their customer markets," Padayachee says.

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