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iBurst bundle cuffs consumers

Candice Jones
By Candice Jones, ITWeb online telecoms editor
Johannesburg, 20 May 2009

iBurst has unveiled another consumer or small business package, offering an Internet connection and laptop bundle.

The company has, over the last few months, been campaigning to attract the dial-up market and small business sector. It says the new offering is aimed at increasing penetration, by increasing access to the computer.

“Poor Internet and broadband adoption in SA is partly due to the low penetration of PCs in the market,” says iBurst's executive head of commercial, Steve Briggs.

“Through these affordable notebook offerings, we hope to bring the Internet within reach of more people and grow the country's population of broadband users. The packages allow anyone within HSDPA or iBurst Wireless coverage to quickly and easily start enjoying the benefits of fast and reliable Internet access.”

The company is bundling an Acer Extensa notebook, with either iBurst Wireless, or an HSDPA package. Consumers can buy it either with 500MB, at R494 per month, or 250MB, at R488 per month. Both offerings ask consumers to sign a 36-month contract.

Customers may not be pleased by the three-year contract terms, since most baulk at the idea of a two-year contract with the other providers. There are no surrounding contract terms and stipulations around devices bundled into packages.

The Independent Communications Authority of SA published draft codes last year intended to protect consumers from lengthy contract options. However, it was swept under the rug after Vodacom threatened the authority with legal action.

Despite the long-term contract, the price points are competitive, although it is not clear which version of the Acer Extensa will be sold with the package. The bottom of the range Extensa is valued at R8 700 on the Acer Web site. It has a Pentium dual core processor and standard 2GB of memory, which fits with iBurst's description of the laptop in its bundle. The machine is equipped with a 160GB hard drive and several other standard gadgets, including Bluetooth and Internet access.

According to iBurst, the laptop comes standard with a three-year warranty.

The Internet company recently dropped its WiMax prices to attract the small business customer. It also offered to buy dial-up modems and replace them with iBurst Wireless access, targeting consumer markets.

Related stories:
iBurst MD resigns
R2bn new listing for iBurst

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