On 31 March, the Independent Communications Authority of SA announced Telkom would reduce the cost of IP Connect (IPC) by 30%. With IPC being the single largest cost for Internet service providers (ISPs) in providing fixed broadband services, the industry and consumers alike readied for improved fixed broadband offerings and price cuts.
The month of April has seen a number of ISPs responding to the authority's price cut implementation. Here are five preliminary offerings that have been introduced so far:
1. During the first week of April, Web Africa revised its home ADSL packages and lowered top-up data costs. The ISP removed the peak and off-peak differentiator, delivering up to 400% more anytime connectivity at the same price.
2. About a week later, OpenWebannounced uncapped ADSL price cuts, and launched a 10Mbps uncapped ADSL product for R1 649 per month.
3. Big four bank First National Bank (FNB) also joined the bandwagon, announcing its own ISP, FNB Connect, would increase the free monthly ADSL data awarded to eligible cheque account customers as of 8 May, when qualifying FNB cheque account holders will receive up to 5GB of ADSL data on a monthly basis.
4. Last week, MWeb reduced the price of 1Mbps uncapped ADSL data accounts by R100 per month, a 33% saving.
5. Axxess followed suit with a price change to its uncapped ADSL last week, slashing prices of its 384kbps and 1Mbps products and launching a 10Mbps uncapped service.

