Price increases starting to hit telecoms services in SA

The weaker rand is starting to impact the price of telecommunications services in South Africa.

By - February 2, 2016 Share on LinkedIn
Rand Dollar Notes

Internet Solutions has informed subscribers that it is increasing the price of its connectivity and cloud services.

The company said the severe devaluation of the South African rand against leading currencies, along with inflationary impacts on its input costs, has significantly impacted its business.

“We endeavoured to protect our clients from pricing volatility and, where possible, implemented measures to minimise the impact of price increases,” said Internet Solutions.

“Unfortunately, maintaining existing pricing for connectivity and cloud services in 2016 is not sustainable.”

Internet Solutions said it will therefore increase pricing for connectivity and cloud services.

For connectivity services, an increase of 4.5% applies. Internet DSL products and Internet mobile broadband products are excluded from the price increase.

For cloud services, an increase of 12% applies. Voice products, Bulk SMS, Public CaaS, Fax, WebEx, and Consumer virtual machine are excluded from the price increase.

The revised pricing will take effect from 1 March 2016.

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The rand could fall to R19/$ – economist

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