MWEB slashes data pricing

2012-07-27 14:43

Duncan Alfreds

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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Comments

• cj.venter - 2012-07-27 14:55

  still telkom screws us :(

  eduardhomes - 2012-07-28 07:17

  Still expensive, but better I stay in thailand, where there is no cap on internet, I pay R350, unlimited in Thailand (Speed, the internet waits for me)

  james.m.wood.773 - 2012-07-28 18:24

  you say that but think on this, if they can affard to cut the cost by half and still generate a profit, weren't they then also just screwing us, I would like to know what their current profit margin is. I agree, thailand costs virtually nothing, have a house in the north there and everything about thailand seems to be better but also cheeper

• Grant Henry - 2012-07-27 15:01

  Im sorry it is still to expensive. MTN, Vodacom, Cell C please wake the F';/'@ up Angola has 4G already, for crying out loud.

  captaine.morgan.90 - 2012-07-27 16:01

  Chinese influence.

• deon.evert - 2012-07-27 15:02

  WTF? My uncapped unshaped 20 Mbps (entry level) broadband costs me £7,50 per month with free landline calls thrown in. Someone's making way too much money off you guys!!

  abram.spamers - 2012-07-27 15:07

  We know ;')

  Tony Lapson - 2012-07-27 15:10

  Internet users know this. The majority don't. Nothing can be done if our government allows monopolies to control certain industries and services.

  James - 2012-07-27 15:18

  Deon, I will explain. You pay 7.50 Sterling for your broadband because in the UK the topography makes it possible that 10 miles of fiber connects 10 000 homes (as an example) whereas in SA 10 miles might only connect 1 000. Couple that with a much larger population with much more disposable income and you begin to see why it costs much more in SA.

  deon.evert - 2012-07-27 15:24

  James, how can that possibly justify a rate that's 13 higher, and was 23 times higher until today??

  rickvcooper - 2012-07-27 15:27

  It is primarily our government that is raping us.

  peter.beltingser - 2012-07-27 15:49

  @Deon All inclusive? You forgot to mention the 13 pounds per month for the line rental.

  James - 2012-07-27 17:01

  You're not serious Deon? Even after I laid it out like that for you? Seriously??? Still stupid?

  gestoffle.vaneerdenvark - 2012-07-28 09:34

  @James - I am with you, although you getting loads of thumbsdown, nobody really knows the true cost of rolling out broadband. People will complain even if they have to pay a rand. I lived in a street in London, I would say about 200 meters in length, there were 40 houses in it, that was just one side of the street as the other side was park! In SA, there would be 4 friggin houses. I hate telkom with a passion, but go and look at telkom's P&L, they are losing money!

  James - 2012-07-30 09:39

  Gestoffle, R 700 per metre for laying fiber. But alas, people would rather "thumbs down" than learn something new. Amazing how people are proud of their ignorance and love shouting at the man, even when they're wrong.

• Tony Lapson - 2012-07-27 15:12

  I really respect Mweb for trying to set a cheaper standard for Internet. It's a pity we still have to rely on Telkoms lines.

  louis.olivier.988 - 2012-07-27 16:55

  Is it really cheaper, do you think mweb is in the bussess to make a profit. The way they set thing up on their web set "Local Only" WTF does that mean? It's a crock of S..t i tell you You still have to add usage on top of that and then the line renatl from Helkom.

  James - 2012-07-27 17:04

  Louis, you have no idea what you're talking about. YOU DO NOT ADD ANY USAGE ON TOP OF THAT PRICE. IT'S UNCAPPED. INTERNATIONAL. YOU DON"T PAY ANYTHING ELSE.

  louis.olivier.988 - 2012-07-27 18:56

  James that is not what I was told by some Call centre dude

  James - 2012-07-30 09:32

  Louis I don't believe that for one minute. You misread the article, simple as that.

• Ian - 2012-07-27 15:23

  Awesome now if only telkom would do some work and upgrade there exchanges

  bert.beaumont.92 - 2012-07-27 19:56

  It'll snow in December when they do.

  rachell.lass - 2012-07-28 13:51

  "their"

• wajmuller - 2012-07-27 15:29

  Sill a bloody ripoff

• johann.bosman - 2012-07-27 16:30

  Sadly 4mbps customers are excluded from the party once again.

• Mandy Casey - 2012-07-27 18:21

  Wireless offers double the speed at less than half the price. Mobility, take your Internet with you. Who wants a telkom landline these days. Mweb for how long have you been overcharging for Internet?

• johanjohlean.mccarthy - 2012-07-27 21:20

  And he sits there, all smiles telling us how much he is dropping the prices,with an amazing amount of R1000!!!! You stink...this just shows us with how much you have been ripping us off!!! Please don't also tell me that you know that your wonderful new prices are STILL pathetically way expensive compared to the overseas market.We paid about R150 p.m. for everything ,fastest speed ,in Taiwan.Stop ripping off the SA consumers.

  Raai.wie - 2012-07-28 10:10

  Then move to taiwan.

• charlvdb - 2012-07-27 23:19

  Uncapped 2Mbps - R369,need to lower that price quite some bit to make it competitive

• Kamohelo Olifant - 2012-07-28 02:01

  Cell c don't have 3G coverage in vaal, MWEB can u plz go mobile

• Quartus - 2012-07-28 08:34

  mweb is not in the in this business to be nice to customers...they are here to make money...lots of money. And every now and again they come with "nice" offers like this to lure even more ignorant customers into their net. Do they think we are bloody fools?

  glenda.mackay.18 - 2012-07-28 17:55

  @quartus.vanzyl. Agree with you mweb thinks we are fools. I would put them in the catogry of Telkom.

• PGPops - 2012-07-28 11:08

  The world average is 10Mbps - we are lucky to get 1. Come on Gov, stop retarding your country. There will be more money for everyone, including you, if you open the gates and allow the country to grow. Make the right decision and enable the country. Private competition works, look at what that did for our airlines.

• pam.benink - 2012-07-28 11:51

  Even at the reduced price, its ridiculous! Here in Holland, I pay 60 euros a month for uncapped, higher speeds than offered by Mweb, and that includes my landline and the equivalent of DSTV, all channels. Telkom are thieves!

• glenda.mackay.18 - 2012-07-28 17:50

  Mwebs service still stinks!!! Afrihost better. I agree cost is the driving force but that comes with service and Mweb needs to learn a few things from Afrihost!

• ken.grimblegrumble - 2012-07-28 18:23

  People who owns MWEB 100%? Surprise, Telkom. That is why you will never hear MWEB dis Telkom.

• aiazmir - 2012-07-28 21:32

  Go Mweb, you rock.

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