Afrihost takes price war to data

Afrihost lowers the pricing bar to about R50 a GB through its new price plan.

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Afrihost's new mobile data price plans, which see the operator doubling up the amount of data on its low-end month-to-month deals, is taking the recent mobile price war into the data arena.

The Internet service provider, which is an MTN subsidiary, said yesterday it was hitting the "cost of high mobile for a six" as its mobile data packages - up to 2GB - would now offer double the data.

Afrihost's latest pricing plan, which is also applicable to existing clients, will see end-users on higher packages, up to 10GB a month, gain additional data. It also introduced a 5GB product at R247 per month. Overall, the new price point comes in at around R50 a GB.

Cell C was the first operator to lower the data pricing bar when it launched its R99 a GB offer a few years ago. While other operators have introduced specials and discounts along the way - with data from Vodacom now as cheap as R69 for a daytime GB plus 1GB of Night Owl - Afrihost's move is seen as setting a new price point.

BMI-TechKnowledge telecoms sector specialist Tim Parle notes there has been a gradual decline in the cost of data for some time. He says Afrihost is managing the price curve, in a bid to attract more subscribers.

Yet, says Parle, current mobile broadband prices are a way off what one would pay for ADSL. Stephen Mncube, chairman of the Independent Communications Authority of SA (ICASA), has indicated the operator, having focused on the cost of mobile voice, will now turn its attention to mobile data.

This came after ICASA introduced new mobile termination rates last September.

Ovum analyst Richard Hurst says cheaper mobile data packages have been "long in the offing". He says the price war has already played out in the voice space. "It is nice to see someone take the first shot at data prices."

Hurst notes operators now need to push data as revenue from voice continues to decline, but the cost needs to come down so it is more affordable to more people. He notes Afrihost is leveraging MTN's network to "one up" other Internet service providers and mobile operators.

The price war has now moved into data, says Hurst, adding Afrihost has thrown down the gauntlet for other companies to follow suit. However, Parle does not anticipate Afrihost taking the battle to MTN as its parent company, noting the offer is for niche users on tablets and PCs.

Parle says the price decline is good news for end-users, such as road warriors, but he does not anticipate it being revolutionary. Yet, Hurst anticipates many other operators emulating Afrihost as they seek to keep and add subscribers. "The new market is mobile data."

Afrihost's new packages