i.got~issues
Expert Member
Hi AfriMan
So it will be R10 or R20 for the package and another R10 for the Afrihost Plus?
So an increase of R20 or R30 depending on package then with Afrihost Plus?
-
Join the MyBroadband community
South Africa’s biggest forum. Discuss, discover, and connect with thousands of members.
-
Question of the Day: Will you be subscribing to the new Disney+ R49 streaming package?
Afrihost price increases announced
- Thread starter Newsfeed
- Start date
Hi AfriMan
So it will be R10 or R20 for the package and another R10 for the Afrihost Plus?
So an increase of R20 or R30 depending on package then with Afrihost Plus?
reactor_sa
Executive Member
I thought internet was getting cheaper, this makes no sense.
Mr Scratch
Expert Member
- Joined
- May 15, 2013
- Messages
- 4,872
- Reaction score
- 1,040
I moved from another SP to Afrihost for some services, and I'm then told you guys hike the price... I guess management realised the race to the bottom on paper thin margins wasn't sustainable.
Grep
Senior Member
Well we have been with them through thick and thin, sure they had their struggles but so haven't we all. They stood up and I am happy to support them.
RedViking
Nord of the South
I don't mind the increase on DSL.
Mobile data is already crap expensive in general , so adding that 10 and 20 or 20 + 10 just push it further up. I don't like that. But then again, if it is cheaper than any other non-contract deal, I guess theres nothing we can do about it.
Also, for some who have more than one package, that little R10 or R20 can end up being R100 or more. So I will look at my package as a whole, is there a way to get all the services for cheaper, weigh the pros and cons, and then stay or move.
Will these increases also affect Axxess?
Mobile data is already crap expensive in general , so adding that 10 and 20 or 20 + 10 just push it further up. I don't like that. But then again, if it is cheaper than any other non-contract deal, I guess theres nothing we can do about it.
Also, for some who have more than one package, that little R10 or R20 can end up being R100 or more. So I will look at my package as a whole, is there a way to get all the services for cheaper, weigh the pros and cons, and then stay or move.
Will these increases also affect Axxess?
Honestly, I just hope that the price increases allow for more support workers. I have a sneaky suspicion after noting how long it has been taking me to get through to them that they are understaffed still in that area.
That and ensuring that the quality doesn't drop like when IPC capacity has ran out a few times before - if this allows for a better buffer to make preemptive instead of reactive (seemingly) changes. Then the increases will be well worth it. I think though it would be useful to have been more detailed in what the increases would go towards (to some extent) like simply saying "we have noted that x is an issue and problems with y can have more investment now such that these issues aren't likely to occur again."
That and ensuring that the quality doesn't drop like when IPC capacity has ran out a few times before - if this allows for a better buffer to make preemptive instead of reactive (seemingly) changes. Then the increases will be well worth it. I think though it would be useful to have been more detailed in what the increases would go towards (to some extent) like simply saying "we have noted that x is an issue and problems with y can have more investment now such that these issues aren't likely to occur again."
RedViking
Nord of the South
They don't have to say where exactly the spend their money. They are a business, not a charity. If you want to know where the money go, invest in the company.
I also note that they include the VAT in their price. So when the VAT is increased to 15%, they will be getting 1% less. This might be the biggest factor for price increases?
Other ISP's will follow soon, if they havent done so already.
Dan C
Honorary Master
R10 , R20 is not much. But it's the principle behind it all.
Fairly stupid to add R10 to a R29 package (assuming mobile included) that's almost 30% more.
Fairly stupid to add R10 to a R29 package (assuming mobile included) that's almost 30% more.
lord-of-war
Senior Member
Well said, should be a % increase not a fixed Rand amount.
FatBoySlim
Expert Member
That's South African business mentality. Economics101 go and read it. Increase demand should never equate to increased prices. You guys sound like Eskom.
reactor_sa
Executive Member
Totally. Are mobile now subsidising fibre?
Yes, as far as I know, it would be one increase for the package (depending on the package price) and another increase of R10 for Afrihost Plus.
Most of you whiners expect an annual salary increase of at least 5% but can you honestly say that you work any harder.
Afrihost. like any other company has the pressure of increased costs and has to recoup them in order to stay in business. The pending increases are minimal and I don't mind paying but do wish that they would give better client service - particularly to people who have stuck with them over many years, through thick and thin.
I don't know how many users Afrihost has but lets take a guess at 200,000XR10 = R2,000,000. A tidy extra amount every month which we have to believe/hope will go towards improving the service.
When I studied Business Economics at school, it's more complex than a one to one relationships. But simply put, when you have a rise in input costs, as well as an increase in demand but without an increase in revenue, you must either cut your input costs (which may reduce quality and also fail to meet the demand) or increase prices.
While data itself sometimes sees a reduction in input costs (through IPC cuts), generally other costs have risen. Also remember that IPC only affects ADSL data, so fibre, mobile and other data do not benefit from IPC reduction. However our data centre costs, maintenance costs, software licences, capacity and backhaul costs will generally steadily increase with inflation.
We are still maintaining very small margins. However, we've generally seen scale allowing us to increase our client base faster than cost rise with inflation. However, we're currently seeing that is not giving us the freedom to make the investment we want in terms of staff and infrastructure to be in a better position to plan for the future. And we also won't maintain that growth if we can't offer an absolutely excellent experience to our existing and future clients. So we felt this was necessary to invest for the future.
Economies of scale work great in a very linear model. However, I think this is a little more complex, and spread across a variety of products, each with differing input costs and maintenance costs.
I totally understand, and that's why we wanted to give everyone a full month to weigh up their options (just the right thing to do). I do believe we still offer the best value and the best experience with our service and ClientZone, but please make up your own mind - I believe you'll see we're still the best option for you
While data may increase, certain products won't be affected and I believe Mobile Voice will not change.