Naked ADSL critical to SA web - MWEB

2012-08-20 10:00
MWEB CEO Derek Hershaw has said that naked ADSL is critical for the mass adoption of cable broadband in South Africa. (Duncan Alfreds, News24)

MWEB CEO Derek Hershaw has said that naked ADSL is critical for the mass adoption of cable broadband in South Africa. (Duncan Alfreds, News24)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Video

VIDEO: Internet state in SA

2012-08-14 13:02

MWEB CEO Derek Hershaw chats about the state of the cable broadband internet industry in SA in this YouTube video.WATCH

Cape Town - Naked ADSL (Asymmetric Digital Subscriber Line) is critical for the mass adoption of cable broadband in South Africa, an ISP has said.

"We've always campaigned that naked ADSL is a prerequisite for really driving adoption of fixed line services like ADSL and getting costs down. Most of the cost savings in the last two years have come from ISPs reducing costing around the data portion of it," Derek Hershaw, CEO of MWEB ISP told News24.

State enterprise Telkom has a virtual monopoly on infrastructure and users are required to pay for a landline telephone along with broadband access.

For ISPs, the additional consumer cost hurts their business model.

"Why are we still forcing consumers to pay for a fixed line voice service? That's simply a tax on top of your broadband connection fee," said Hershaw.

Demand

There is demand for broadband internet services in SA and MWEB has an active gaming community of around 50 000 users and most of its customers have opted for uncapped offerings.

"Our uncapped base is now bigger than our capped ADSL base - just over 60% of our customers are now uncapped.

"On a month by month basis, in terms of new customers that join MWEB, almost 90% come in on an uncapped product. That was our strategy from Day 1; that's where we focus our attention," said Hershaw.

MWEB introduced uncapped internet service to SA in 2010 and Hershaw said that there observable changes in user patterns.

"We've seen that mindset in the South African consumer change now. Uncapped is accepted as the way the internet should be provided and the way that people want to consume it," said Hershaw.

More MWEB customers are consuming rich media like video online and engaging in torrent downloads that were cost prohibitive under the old model.

"What we leant very quickly is that the South African consumer is no different to a consumer in any other part of the world. Once you take the shackles off, they behave in exactly the same way," Hershaw said.

According to MWEB, consumers in SA have become more demanding as far as internet connectivity was concerned but cost was still a barrier to entry. It is estimated that there are about 800 000 ADSL subscribers in the country.
 
"The access side still remains a barrier to wide scale adoption," Hershaw added.


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

- Follow Duncan on Twitter
 
- News24
Read more on:    mweb  |  broadband  |  internet
NEXT ON NEWS24X
SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
23 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/News
 

Five wrapping hacks you have to know before Christmas

Five gift wrapping hacks that will save Christmas for you!

 
 

I love summer.24

Sexiest Instagrams of 2014
Joburg hot spots for cocktails, craft beer, tapas and wine!
Summer Survey!
Great ideas for the best summer sandwiches!

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Kalahari.com - shop online today

Grand Theft Auto 5

Now available on PS4, Xbox One and PC from R649. Buy now!

Festive gifts!

Check out our awesome range of festive gifts to make everyone’s wishes come true. Shop now!

Save on Samsung

Cameras, mobile phones, TVs, Tablets and more. While stocks last. Shop now!

Save up to R2200 on electronics! – As seen in the catalogue

Wishing for tech gadgets this festive? Save up to R2100 on hot tech products at kalahari.com. While stocks last. Shop now!

30% off the bestselling books

Save big on the most captivating reads of 2014. While stocks last. Shop now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

The energy today is serious, materialistic and hardworking. You may find you get a new outlook on things and you may want to spend...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.