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24 January 2014

Telkom announces another IP connect price reduction

Telkom Wholesale today announced an effective 15% price reduction on its IP Connect (IPC) product offering with effect from 01 February 2014.

This announcement follows the 5% free IPC bandwidth allowance that was offered by Telkom Wholesale on a temporary basis from 1 October 2013, despite the fact that not all Internet Service Providers had taken up the offering.

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 IPC Capacity procured from Telkom as from 01 February 2014.

This latest price reduction must be seen against the backdrop of the 30% price reduction that Telkom announced on 1 April 2012 and the 8% price reduction implemented on 17 October 2013. Taken cumulatively, and considering this latest price reduction, Telkom has given effective price reductions of approximately 53% over the last two years.

Says Telkom Managing Executive for Telkom Wholesale Services, Mr Casper Kondo Chihaka: “I believe that this price reduction will further assist and enable ISPs to grow fixed broadband service offerings in South Africa. This is yet another significant contribution by Telkom to lower the cost of communication in line with Government’s objectives.

We are also hopeful that this price reduction will ultimately result in more affordable broadband price offerings for South African broadband consumers,” concludes Mr Chihaka.

For further enquiries, please contact:

Pynee Chetty

Senior Specialist: Media Relations

Group Communication

Tel:+27 12 642 1716

Mobile: +27 81 389 7874



Leigh-Ann Francis

Specialist: Media Relations

Group Communication

Tel: +27 12 642 1728

Mobile: +27 81 391 4780


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Telkom is a leading communications services provider in South Africa. We had consolidated operating revenue of R16.8 billion and normalised profit after tax of R1, 683 million for the period ended 30 September 2015. Total assets amounted to R41.9 billion and equity attributable to the owners of Telkom to R23.5 billion as of 30 September 2015. The group generated normalised free cash flow of R1.4 billion for the period ended 30 September 2015.

As of 30 September 2015, we had approximately 3.3 million telephone access lines in service and 1,030,441 ports connected via MSAN access. We offer business, residential and payphone customers a wide range of services and products, including:

  • fixed-line retail voice services using PSTN (Public Switched Telephone Network) lines, including ISDN (Integrated Services Digital Network) lines, and the sale of subscription based value-added voice services and calling plans;
  • fixed-line customer premises equipment rental and sales services both voice and data needs and these include PABX, Computers, Routers, Modems, Telephone handsets and other ancillary equipment;
  • interconnection services, including terminating and transiting traffic from South African mobile operators, as well as from international operators and transiting traffic from mobile to international destinations;
  • fixed-line data services, including domestic and international data transmission services, such as point-to-point leased lines, ADSL (Asymmetrical Digital Subscriber Line) services, packet-based services, managed data networking services and internet access and related information technology services;
  • Data Centre Operations includes e-commerce, application service provider, hosting, data storage, e-mail and security services;
  • W-CDMA (Wideband Code Division Multiple Access), a 3G next generation network, including fixed voice services, data services and nomadic voice services;
  • mobile communication services, including voice services, data services and handset sales through our mobile navbar-brand called Telkom Mobile;
  •  information and communication services including cloud services, infrastructure services, workspace services, global service integration management and hardware and network equipment sales locally, in seven African countries, the UK and Dubai through Business Connexion Group; and
  • other services including directory services, through Trudon (Pty) Ltd, wireless data services, through Swiftnet (Pty) Ltd.

Convergence is one of our key strategic initiatives in building a sustainable future for Telkom.  We will lead the provision of converged services in South Africa in support of our mission statement: Seamlessly connecting people to a better life.