Clarifications on the 68% Reduction of Wholesale Internet Rates by Telikom

telikom pngFollowing the announcement on Wednesday last week of the new Wholesale Internet plans, Telikom has received an overwhelming response from the ISP’s, business community and the public welcoming the positive move. However a number of questions raised about the new offer have to be clarified.

  • The wholesale internet plans announced are offered only to current and intending ISP’s with relevant and valid NICTA Licences.
  • The wholesale internet plans offer fixed bandwidth plans with flat billings as opposed to the previous usage plans. This means, under the new plans, an ISP may acquire a bandwidth for a fixed monthly fee.
  • There is no minimum usage for these plans.
  • Although ISP’s will not be charged for usage, it is not expected to be over and above the acquired bandwidth
  • Data transfer/throughput is dependent on the bandwidth selected, with no bursts permitted over and above.
  • Given the fixed amount Telikom will be billing ISP’s on a monthly basis for the acquired bandwidth, it is up to the ISP’s to determine the retail price to sell to their end customers.
  • Telikom does not set retail prices for ISP’s

What are some benefits of the new Wholesale Internet plans to an ISP?

  • Fixed monthly charges for bandwidth
  • No usage billing for the new fixed bandwidth plans
  • Greater freedom for ISP’s to offer innovative plans such as capped data plans and unlimited bandwidth plans
  • No penalties for under utilised bandwidth
  • Potential for competitive and innovative retail prices for ISP’s to acquire more customers
  • The choice of the data rate or bandwidth effectively determines the data throughput expected by an ISP within a period. On this basis, a simple comparative calculation of usage is done on a baseline data rate and bandwidth of 5 MB per second, which shows a 68% reduction in the rates on a per MB basis.
  • Under the old plan, usage is charged on total usage for a period as determined by Telikom, while usage is not charged for the new plans.

Mahesh Patel               Charles Litau
Chairman                           CEO
Telikom                              Telikom

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