South African internet service provider (ISP) Afrihost is reportedly planning to pass Telkom South Africa’s recent wholesale ADSL price reductions on to its subscribers, local news agency MyBroadband reports. Afrihost’s director Greg Payne was cited as saying: ‘We are waiting to see how much of the Telkom [IP Connect] IPC reduction is passed through to us and our plan is to pass most, if not all of this on to our clients.’
As previously reported by TeleGeography’s CommsUpdate, in January 2014 Telkom SA announced a 15% price reduction on its IPC product offering with the new price to take effect from 1 February 2014. This announcement followed a 5% ‘free’ IP Connect bandwidth allowance that was offered by Telkom’s wholesale division on a temporary basis from 1 October 2013. ‘Telkom has now decided to convert the above allowance into a permanent price reduction. This, together with an additional 10% price reduction, means that wholesale customers will receive an effective 15% price reduction on all new and existing IP Connect capacity procured from Telkom as from 1 February’, a company’s press release noted.