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The competition commission has signed an agreement with Telkom, and its wholesale division Openserve, which will replace the telecom operator’s old wholesale IP Connect product with a completely new wholesale offering for Internet service providers.
TechCentral reported last month that Telkom and the commission had reached an agreement on the regulator’s concerns about IP Connect, which ISPs were forced to use when selling services over Openserve’s copper and fiber infrastructure.
The commission has now said that Openserve’s new set of wholesale products will replace IP Connect, with the proposed structure and starting prices set to reduce wholesale charges to ISPs. It did not provide the amount of the price reductions.
“The Competition Commission and Telkom have reached an agreement on the substantial reduction of wholesale broadband access costs in order to remove the excessive price concerns regarding IP Connect raised in the market research report data services released in December last year, “the commission said Tuesday.
“The report urged the company to reach an agreement with the commission on the elimination of excessive prices within two months. One of the conclusions was that there was a verbatim case of excessive prices against Openserve. “
“Improve competition”
Openserve’s new offering will allow ISPs to “manage their costs and compare Openserve’s fixed broadband prices with prices from other wholesale broadband providers more easily,” the commission said in a statement. “This, as a result, will enhance competition in the fixed broadband connectivity market.”
“The commission welcomes the effective price reductions for wholesale fiber broadband infrastructure for ISPs, as this should result in lower prices for consumers and small businesses, which are increasingly dependent on fiber networks, “said Commissioner Tembinkosi Bonakele. – (c) 2020 NewsCentral Media
