Telkom Wholesale Services announced sweeping wholesale unit price reductions of up to 63% across its product range including Wholesale Fibre Broadband Access, IP Connect, Resell DSL, Metro Ethernet and SAIX dedicated access offerings.

“A connected South Africa is where positive change starts to happen”, said Alphonzo Samuels, Telkom’s Chief Technology Officer. “Telkom’s R12 billion investment in our Next Generation High Speed Broadband Network is ultimately to support South Africa’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”, Samuels said.

These price reductions are the latest in a series of price reductions of Telkom’s IP Connect product which has now effectively been halved over the past eighteen months.

As Telkom is one of the major suppliers of core backbone services to most of South Africa’s ISP’s these reductions should result in price reductions across the board, from home ADSL to corporate fibre.

The new prices will be effective  from 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, the socio-economic development of South Africa,” said Telkom’s Managing Director of Wholesale Services Mr Prenesh Padayachee.

“As part of our turnaround strategy we recognise that we have an important role to play in enabling our customers to deliver on the connectivity demands that South African’s have come to expect. Our investment in next generation networks and applications is aimed at driving the penetration of broadband and thereby enabling our customers to grow the market,” he said.

Telkom services its wholesale customer base with the largest and most ubiquitous IP network in Africa and the Company’s Wholesale services are positioning themselves for an exponentially increasing demand for copper and fibre-based broadband services.

Data usage is expected to increase across all forms of access in the next few years for both Mobile and fixed.

Telkom Wholesale services maintain that they will continue to invest in new generation broadband access technologies including Fibre to the Home and Business which will be offered on an open-access basis to other ISPs and Multi Service Access Nodes initiatives aimed at delivering even higher speeds to the industry and driving demand among end consumers for rich media content.

“Ultimately Telkom’s Wholesale division is enabling our resellers through its network and resell products, to operate and compete successfully in their customer markets,” Padayachee said.


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