MWEB has announced that it will increase the price of its bundled 384kbps ADSL service by R10 following Telkom’s decision to increase its wholesale rates. This will happen at the same time as these customers get upgraded to a faster 1Mbps line.
Derek Hershaw, CEO of MWEB ISP said that it is disappointing that Telkom has chosen to increase the line rental costs on this entry-level service. “Unfortunately it’s a cost that we are not able to absorb,” said Hershaw.
“Fixed-line broadband is increasingly losing market share to mobile services. Telkom should be finding ways to drive these costs down, and this includes providing a ‘naked ADSL’ service where consumers are not forced to take a Telkom voice service in order to get ADSL”.
MWEB confirmed that customers on 1Mbps, 4Mbps and 10Mbps services would not pay more for their line rentals if these lines are part of an MWEB All Inclusive package.
“Customers who take these services directly from Telkom will, however, also be subject to a price increase on the 1st of August,” MWEB said in a press statement.
Upgrades of 384Kbps lines to 1Mbps lines will roll-out over a six week period from 1 August, 2012.
Hershaw explains that although the cost of ADSL lines has increased, customers will experience line speeds up to three times as fast as their current speed.
“MWEB’s all Inclusive package will still be cheaper than paying separately for data and an ADSL line directly from Telkom,” concluded Hershaw.