SA ISPA calls on Telkom to reduce its broadband fees

Telkom has been implored to reduce charges on Internet service providers using its fixed-line broadband network to keep the market competitive.

The part state-owned telecommunications company reduced its charges by 30 percent in 2012, but the Internet Service Providers’ Association (ISPA) says it did not go far enough.

HumanIPO reported earlier this month on the growing price war between Internet providers which saw Telkom, MWeb and WebAfrica all drop their prices, but ISPA believes the Internet Protocol Connect (IPC) charges are holding the market back from further cuts.

Marc Furman, Co-Chair of ISPA, said: “The retail ISP market has shown time and time again that high levels of competition lead to pricing transparency and wholesale rate cuts are quickly and efficiently passed on to consumers.”

Furman called on the Independent Communications Authority of South Africa (ICASA) to “act swiftly” to enforce a reduction to the IPC charges, which when slashed last year led to improved pricing for consumers.

Furman added: “This is a palliative measure that worked well and should be employed again.”

Posted in: Telecoms

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