Stay informed, make smarter decisions, and navigate the ICT landscape with confidence.
Tip for ICT Buyers: Avoiding Hidden Costs in ISP Contracts
When sourcing connectivity solutions, it’s easy to be drawn in by an attractive monthly rate or a high-speed promise. But not all ISP offers are created equal - and what looks like a great deal on paper can hide costly pitfalls.
Hidden Costs to Look Out For:
Installation & Activation Fees:
Some providers advertise low monthly pricing but add once-off installation, cabling, or activation costs after the fact. Always request a detailed quote before signing.
Contention Ratios (e.g. 1:10 or 1:20):
Shared infrastructure affects performance. A 1:1 ratio offers dedicated bandwidth, whereas a 1:20 ratio means potential bottlenecks during peak hours — impacting cloud services and voice quality.
Static IP Charges:
If your business requires remote access, VPN, CCTV, or hosted services, you may need a static IP. Some ISPs charge a monthly fee for this, others bundle it in — make sure you know which.
Hardware Rental or Purchase Costs:
Will the ISP supply a router, firewall, or fibre ONT? Are these owned, rented, or included? Ongoing rental fees can inflate total costs over time.
Support & SLA Fees (after-hours, engineer callouts):
Not all ISPs include round-the-clock support or rapid response SLAs in their base offering. After-hours support or engineer dispatches may come with premium charges.
Early Termination or Relocation Fees:
If you outgrow the service or move premises, contract exit clauses can be expensive. Understand the notice period, prorated refunds (if any), and potential break fees.
Soft Caps / Fair Usage Policies (FUP):
Some “uncapped” packages come with throttling after certain thresholds are met. These soft caps are often buried in the terms and conditions.
Pro Tip: Request a Total Cost of Ownership (TCO) quote that includes all charges across the full contract term — it’s the only way to compare offers fairly.
Tech Market Highlights: Key Developments This Week
Stay ahead of the curve with industry shifts that impact the ICT ecosystem:
MTN & Vodacom Announce Interconnect Rate Revisions
The two telecom giants are adjusting interconnect fees in line with ICASA’s regulatory framework. Expect potential downstream pricing changes in VoIP and mobile solutions.
Openserve Launches Premium Business Fibre in Tier-2 Towns
A strategic move to broaden access — ideal for remote branches or satellite offices. Expect high-availability links in regions like Paarl, George, and Polokwane.
Global Cloud Spend Up 19% YoY
According to Synergy Research, global cloud infrastructure spending rose by 19% year-on-year in Q1 2025 - a clear sign that hybrid strategies and AI workloads are driving demand.
Local ISPs Experiment with 10Gbps Residential Fibre
A few high-end estates in Gauteng and the Western Cape are being trialled with ultra-high-speed connections. While not yet commercially viable at scale, this signals where the market may head long-term.
Insight of the Week
“The network is the business.”
— John Chambers, Former CEO of Cisco
This statement is more relevant than ever. In an age where cloud adoption, remote work, and SaaS dominate operations, your network’s performance and security are directly tied to business continuity and growth.
Gartner forecasts that by 2026, 60% of enterprise networks will adopt Secure Access Service Edge (SASE) frameworks.
This represents a strategic shift toward consolidated network and security services — offering agility, reduced complexity, and better protection.