A Game-Changing Move For Fibre Internet In “South Africa”
“Telkom”, “South Africa’s Partially State-owned Telecommunications Giant, Has Made A Strategic Pivot In Its “Fibre-To-The-Home” (FTTH) Pricing Model—One that Directly Impacts Consumers, “ISPs”, And The Country’s Digital Future. Once accused of Destabilizing The Market With below-Cost Openserve Fibre Pricing, “Telkom has now adjusted Its “FTTH” Offerings To Align With national Market Standards.
This Change, Announced In May 2025, Positions Telkom Not just as a key broadband player But as a fair Competitor In the Rapidly Evolving “South African” Fibre Market.
Controversy Over Alleged Anti-Competitive Pricing
Back in April 2021, Telkom was in hot water. Several Internet Service Providers (ISPs) raised red flags, accusing the telecoms provider of using Openserve—its wholesale fibre arm—to offer FTTH packages at prices below cost.
- This Alleged Practice:
- Undermined Smaller “ISPs”.
- Sparked Concerns Over Market Monopolization.
Triggered Regulatory Interest From The “Independent Communications Authority Of South Africa” (ICASA).
Openserve, Launched In 2015 And Legally Separated In 2022, Remains A Telkom-Owned But Autonomous Entity, Overseeing Fibre infrastructure. While it no longer Functions Under Direct “Telkom” Retail Control, Its Pricing Heavily Impacts Industry Equilibrium.
What Changed: “Telkom’s” New Pricing Strategy (May 2025)
As of May 2025, Telkom FTTH packages are now priced Competitively, Falling in line With other Fibre ProvidersIn “South Africa””. This new Approach Addresses:
- Regulatory Pressure And Scrutiny.
- “ISPs’” Calls For Market Fairness.
- Consumer Demand For Affordable Fibre Without Monopolistic Dominance.
Key “Pricing Adjustments” Include:
- More Transparent Bundling Of Data And Installation Costs.
- Clearer Speed Tiers With Average Performance Benchmarks.
- No Hidden Charges Or Aggressive Promotional Lock-Ins.
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Why It Matters: Benefits For Consumers And The Market
“Telkom’s” Fibre Pricing Shift Signals More Than A Price Change—It’s A Strategic Realignment with long-Term Industry Consequences.
For Consumers:
- Fairer Prices Mean More Choices And Better Value.
- Improved Fibre Access In urban And Peri-Urban Areas.
- Potential Price Drops From Rival “ISPs” To Stay Competitive.
For ISPs:
- Level playing field restored.
- Room for innovation and service differentiation.
- Less risk of being undercut by subsidized wholesale packages.
For the Industry:
- Encourages Broadband Penetration, Especially In Underserved Areas.
- Aligns With “South Africa’s National Broadband Policy” Goals.
- Builds Consumer Trust In government-Affiliated Telecom Services.
How “Telkom” Realigned Its Fibre Model: Key Strategies
Separation Of Retail And Wholesale (Post-2022)
By Legally Separating Openserve From Its Retail Division, “Telkom” Created An Independent Wholesale Player—Boosting trust among ISPs.
Pricing Reform And Transparency
2025 Brought the Reassessment Of wholesale pricing models, Ensuring ISPs and consumers receive consistent, Fair pricing.
Market-Responsive Packaging
Telkom Introduced tiered packages Targeting Different Income Groups—From Budget-friendly fibre to High-Performance Streaming Plans.
Conclusion
“Telkom’s Turnaround” Brings Hope For Fair Fibre
Telkom’s fibre price Realignment is more Than a business move—It’s A Strategic Course correction that may Redefine “South Africa’s” Broadband ecosystem. With competitive pricing, Transparent Policies, And Renewed Commitment To Market Fairness, “Telkom” Is Poised to Strengthen Its Role In A More Equitable Digital Future.