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ADSL: R 8 per GB local, R 35 per GB blended

October 13, 2009 No comments

Rudolph Muller is the editor at MyBroadband and covers telecoms and broadband news. Rudolph comes from an academic background, but left the University of...

New ADSL service provider cuts the price of local, blended and unshaped data (Edit: This may be a scam!).

ADSL data charges have plummeted in recent months, dropping from the previous de-facto standard of R70 per GB to around R50 per GB.  This is partly related to international bandwidth price cuts brought on by SEACOM, but is also an indication of the cut throat consumer Internet Service Provider (ISP) market where numerous companies battle it out for market share.

Afrihost shocked the ADSL ISP market last month when they launched their R29 per GB offering.  This price is well below cost, and unsurprisingly the company signed up a large number of new subscribers in the first few days.

Afrihost’s pricing was criticized by competitors as below-cost and unsustainable, and it may well have created unrealistic expectations from other ISPs to follow suit.  R 29 per GB is well below the wholesale cost from SAIX and Internet Solutions, and it may be that Afrihost relies on future wholesale bandwidth price cuts to build a profitable business.

New ADSL data pricing

A new ISP has now entered the market with equally aggressive pricing.  Little known web design and hosting company Social Flu Internet has launched local, blended and unshaped ADSL data services.

Social Flu Internet charges R8 per GB for local-only ADSL data, R35 per GB for shaped data and R 45 per GB for unshaped data.  These prices are well below standard rates for similar offerings in the market – excluding Afrihost’s R 29 per GB for blended data.  These prices are available on a month-to-month contract.

Social Flu Internet owner Enrico Rausa explained that all his offerings use SAIX bandwidth, and that the launch prices will not increase.  Rausa added that while Social Flu Media may not be well known, they are “here to stay”.

Good news for ADSL users is that Afrihost’s ‘limited’ offer of R 29 per GB is currently still available, but Afrihost indicated that the offer is likely to end this week.

(Edit:  This may be a scam!).

ADSL data pricing – discussion

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