Uncapped broadband brings the customers in

Internet service providers see a rise in subscribers on the back of affordable uncapped broadband services

Uncapped ADSL money

Internet service providers (ISPs) are seeing an increase in subscribers since launching uncapped ADSL packages.

Up to 65% of MWeb’s customers are on uncapped ADSL, since launching these services in 2010, under the leadership of former CEO Rudi Jansen.

“We are definitely seeing a shift towards the use of uncapped products. Many of our existing capped customers are migrating to uncapped solutions, especially as they start exploring more rich media online,” said Rihana Hoosain, head of products at MWEB.

Hoosain adds that the migration towards uncapped data packages is a natural progression consumers are making.

“Paying per GB could end up being quite expensive, making uncapped ADSL the product of choice. This is exactly what we have seen with our current subscriber base,” adds Hoosain.

In October 2011 Telkom launched a six-month trial for uncapped broadband with no additional costs attached.

Rudi Jansen

Rudi Jansen - MWEB CEO

“Many ‘new to broadband’ customers opted for this offer enabling Telkom to grow its uncapped customer base,” said the fixed-line operator. Telkom was however reluctant to divulge how many new subscribers the promotion attracted – citing this as “competitor sensitive information”.

Some Telkom customers who have trialled its uncapped promotion praised the company on the effortless installation of the devices required for the service, but have however criticised the administration process.

Mobile operators have been more reluctant about launching similar products after having raised concerns about the sustainability of the business model. MTN is the only operator with uncapped packages.

MWeb’s uncapped offerings range from R219 p/m to R2 359p/m. Telkom’s pricing structure is similar with certain restrictions placed on download speeds during certain hours.

Neotel currently offers uncapped broadband to it enterprise clients at prices ranging between R1 299p/m to R4 499p/m.

Source: Moneyweb

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