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| Rudolph Muller | August 18, 2010 | No comments |
Rudolph Muller
Rudolph Muller is the editor at MyBroadband and covers telecoms and broadband news. Rudolph comes from an academic background, but left the University of...
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Africa INX says that a real uncapped ADSL model is not deliverable in the SA market without compromising service levels; they will launch capped ADSL in August
Africa INX recently informed their clients that they will no longer be releasing an Uncapped ADSL service offering. “We feel that entering into this uncertain and generally problematic space will have a negative effect on our network as well as our brand,” the company said in a press statement.
In an email to customers Africa INX said that companies like IS and Afrihost have faced legal action over the ‘false advertising’ surrounding their uncapped ADSL products. “This is due to these, and all other ADSL companies, implementing usage restrictions, on their DSL offerings, which in principle means that the services are in fact not uncapped.”
“I believe that Africa INX would be forced into a similar strategy, given that users are able to consume significant bandwidth, which effectively is not recovered in their small monthly service payments. The result of which is that a real uncapped ADSL model is not deliverable in the SA market without compromising service levels, or network Operators risking substantial revenue losses,” said Africa.INX MD Stuart Hardy.
“Having also met recently with almost every ADSL provider, it is clear that the vast majority of these providers are investigating ways of exiting their uncapped strategies as they cannot sustain the support etc costs of addressing this network.”
According to Hardy Africa INX has been monitoring the progress of uncapped ADSL since its launch, and has watched users moving from the traditional capped services to uncapped services, only to migrate back to more reliable capped services again.
“We firmly believe that short of substantial reductions on the cost of IP Connect, Local and International transit bandwidth fees, the capped ADSL model will return to being the most used and reliable service offering in South Africa,” said Hardy.
Africa INX will be launching its capped DSL product within the next two weeks, which they hope will “provide one of the highest levels of services in the market”.
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