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Web Africa steps up in price war

Bonnie Tubbs
By Bonnie Tubbs, ITWeb telecoms editor.
Johannesburg, 04 Feb 2013

Another of SA's Internet service providers (ISP), Web Africa, has joined the fight for ADSL consumers by reducing its home uncapped ADSL prices by up to 32%.

Web Africa says the new prices, which kicked in last night, were introduced due, in part, to a shift of the company's ADSL traffic from its own network to Internet Solutions, and due to the recent price cuts by Telkom.

Web Africa's price cuts range from a saving of R10 per month on its 1Mbps package, to a saving of R300 per month on the 10Mbps home product. The most popular package, according to the ISP, is the 4Mbps product, which has gone down to R339 per month, R160 less than the previous monthly fee of R499 per month.

Telkom's new lower uncapped ADSL prices were effective as of Friday, following an announcement that the company had slashed prices by up to 40%, which sparked what the industry expects to add to the telecoms "price war" that is emerging thanks to fundamental changes in the market.

MWeb was first to the field with the introduction of a range of new throttled, uncapped ADSL products.

Web Africa CEO Tim Wyatt-Gunning said last week - in response to Telkom's cheaper broadband move - that it was a shame Telkom chose to get aggressive on pricing in the part of the market which is already highly competitive, "while turning a blind eye to cutting prices in the area which would actually stimulate growth in ADSL, being the line rental prices".

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