A Welcome first step towards lower wholesale ADSL Rates

Prices will be dropped by 30%

April 12, 2012

The Internet Service Providers’ Association of SA (ISPA) says the announcement last week by the Independent Communications Authority of South Africa (ICASA) that wholesale ADSL IPConnect (IPC) prices will be dropped by 30% is a welcome first step in the right direction.

“ISPA notes that ICASA has worked incredibly hard to realise this reduction which is a good first step towards more affordable broadband in South Africa. As with all things worthwhile the first step is the hardest. However, the difficulty in getting this far should not detract from the necessity of going even further, even faster,” said Marc Furman, co-Chair of ISPA.

Effective from 1 April 2012, the development is a positive outcome for ISPA’s members. “The costs associated with providing broadband services have remained stubbornly high for several years. The 30% IPC reduction by ICASA means that ISPs now have greater flexibility in setting prices for broadband services. This is good for the industry and for consumers. ISPA is very happy with ICASA’s good work on the IPC pricing regime,” concluded Mr Furman.