MWEB slashes data pricing

2012-07-27 14:43
MWEB's Derek Hershaw has announced reductions in internet access pricing. (Duncan Alfreds, News24)

MWEB's Derek Hershaw has announced reductions in internet access pricing. (Duncan Alfreds, News24)

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Cape Town - Internet service provider MWEB has announced a price drop on its premium internet data package in the hopes that more consumers will upgrade to higher speed data products.

MWEB cut the price of the 10Mbps (megabits per second) uncapped and unshaped ADSL pricing by R1 000 to R 1 359 per month and the uncapped but shaped 10Mbps package has been reduced to R 999 from R 1 999.

"Locally, 10Mbps Uncapped ADSL is a premium product and by cutting the price of our offering by 50% we're making it possible for more South Africans to move up the broadband value chain to top speed, uncapped internet," said Derek Hershaw, CEO of MWEB.

The company has been driving price reductions in the market since introducing uncapped internet packages in 2010. The ISP also pushed for reduced costs for peering on local networks.

Despite these moves, cable broadband costs remain high in South Africa particularly because state-owned Telkom owns a virtual monopoly on infrastructure.

Discounts

The Internet Service Providers' Association called on the department of communications to force Telkom to take the measures necessary so that more South Africans would have access to cable broadband.

"Government controls the board of directors at Telkom so effectively they control the direction Telkom takes and the things it could be doing if it wanted to be an enabler of economic growth in South Africa as opposed to a roadblock or retardant," Dominic Cull, ISPA regulatory advisor told News24 in 2011.

MWEB is also trying to entice consumers by offering discounts on line rental.

"MWEB 1Mbps, 2Mbps, 4Mbps and 10Mbps uncapped data customers who bring their ADSL lines across to MWEB will also benefit from cheaper ADSL line rental," the company said.

Despite the exponential growth of wireless internet services, cable broadband remains critical to the infrastructure of the network and SA has seen delivery of large-scale submarine fibre optic cables going online.

Most users though, are prevented from accessing these services as the so-called "last mile" remains under the control of Telkom.

The new price breakdown looks like this:

Uncapped 2Mbps - R369, and R599 including line rental
Uncapped 10Mbps - R999, and R1 359 including line rental

Uncapped and Unshaped 1Mbps - R759, and R1 048 including line rental
Uncapped and Unshaped 2Mbps - R1 429, including line rental

Full pricing for all MWEB data packages are available on the website.

News24 is part of 24.com, a subsidiary of Media24, which is in the Naspers stable. MWEB is a subsidiary of Naspers.


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