Telkom in intriguing move to open the copper local loop

Telkom is introducing a new wholesale product for Internet service providers that will mean consumers can directly obtain a broadband service from their ISP and will no longer be required to buy a copper line from Telkom’s retail division.

It’s not clear if the move is a form of local-loop unbundling (LLU) – an intervention long sought by ISPs – but it appears, at the very least, to be a step in that direction. Telkom said it will provide more details in the coming days to its ISP partners. TechCentral has reached out to the company for further comment and clarification to a statement it released on Tuesday evening.

LLU is a specific regulatory intervention, introduced in some developed markets, to break the monopoly choke-hold of former monopoly fixed-line telecoms incumbents. Typically, it involves opening the local loop of copper cables between customers’ premises and the local telephone exchange to other licensed operators, including ISPs.

The introduction of the new wholesale product comes after Telkom last year said it planned to terminate copper-based access network in the coming years as it views copper as a legacy technology that will be replaced by fibre to the home and 4G/LTE wireless services. The copper network is also expensive to maintain. Its announcement on Tuesday may be designed to prolong the useful life of the network, but this is not immediately clear this is its intention.

Openserve, Telkom’s wholesale services division, said it will “wholesale its copper broadband access network through its new suite of Openserve Pure Connect products across multiple speeds”. The products will be launched with effect from 1 May.

‘Easier’

Openserve CEO Althon Beukes said the wholesaling of copper broadband access complements Openserve’s overall fixed-broadband strategy. “This initiative will transform the current channel, process, pricing and product sets across Openserve’s portfolio, thereby making it easier for its clients (the ISPs) to utilise, stimulate and connect the end customer on the company’s larger broadband access network.

“While Openserve continues to modernise its fixed infrastructure and upgrade its network, it believes that its current copper broadband infrastructure is well positioned to be wholesaled where it is viable and available. This will certainly cater for the increased connectivity and consumption needs by providing an affordable and reliable service to our customers. This should also further support and stimulate online business and the economy at large,” said Beukes in a statement.

“Openserve will provide further details to its clients and connectivity partners in the coming days and is confident that through its comprehensive wholesale broadband access proposition it will be able to cater for broadband connectivity and data consumption needs of the consumers.”  — © 2020 NewsCentral Media