South African regulator Icasa announced that the main product for wholesale access to incumbent Telkom's network, IPConnect, will be reduced in price by 30 percent. IPConnect represents the largest cost for alternative operators offering ADSL over Telkom's network, and Icasa hopes the price cut will lead to more offers and increased take-up. In an update on its local loop unbundling plans, the regulator said it aims to introduce a Bitstream product by November, as part of a phased introduction of LLU services. Prior to the introduction, the regulator will consult stakeholders on Telkom's claim of an 'access line deficit', where the retail price of an access line does not cover the full cost of providing an access line. Icasa said it will assess the scale of the ALD as a precursor to the introduction of Bitstream services.
