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Cell C, MWeb promote cheaper broadband

Bonnie Tubbs
By Bonnie Tubbs, ITWeb telecoms editor.
Johannesburg, 08 Jan 2013

MWeb, SA's second biggest Internet service provider (ISP), and Cell C, third mobile operator, have teamed up to introduce reduced mobile packages as part of the duo's campaign for cheaper broadband.

The two corporate campaigners for more affordable in SA announced the deal - set to run until the end of the month - yesterday.

As well a promotional offer of 2GB for R89 per month, MWeb subscribers can also sign up for 5GB, 10GB and 20GB 12-month packages for R499, R899 and R1 799 per month, respectively.

MWeb CEO Derek Hershaw says Cell C's stance reflects that of the ISP closely when it comes to broadband pricing in SA. "What we like about this deal with Cell C is that the company is very much aligned with our way of thinking, which favours the driving down of broadband prices for South African consumers."

He says, as with MWeb's introduction of uncapped ADSL in 2010, Cell C has taken a number of steps towards affordable broadband. "We like what Cell C has been doing in this space."

This year, says Hershaw, the ISP's hope lies in the introduction of a wholesale model in SA. "We are really hoping for a true wholesale price that will allow us to introduce our own products and bring down prices even more."

Cell C CEO Alan Knott-Craig is also an ardent advocate for the introduction of a wholesale model in SA. While he has been making waves in the mobile data space with lower prices since his induction as CEO last year, he says a lot needs to be done by government to enable providers to offer cheaper data.

"The current approach to broadband in the country is not clear from government's side. It has to provide clarity.

"It has always been about carving out spectrum among lots of players. I just think that's the wrong way to go about it. [I suggest] spectrum is put all into one tub, if you like, and then one national wholesale network is built."

Customers up for the Cell C deal - on either a 12- or 24-month basis - will also have access to 300MB of free WiFi and 1GB of free ADSL data per month from MWeb.

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