- May 22, 2011
Got this email from Afrihost, and noticed a few weeks ago I could not sign up for a new 20GB package.
Looks like I need to take my R29 bucks to Axxess
Looks like I need to take my R29 bucks to Axxess
We've had to make a tough decision:
Unfortunately due to a variety of reasons we are discontinuing our 20GB DSL data packages as from the 1st of June.
So please read through this email carefully to make sure you understand exactly what is going to happen, what it means for you and what your options are going forward.
The good news is that for the next two months (April and May) you will be automatically upgraded to our 100GB data package at NO extra cost. This means that, while you decide what to do, instead of getting 20GB you will get 100GB each month at the SAME price that you are paying now.
So what exactly is going to happen?
Our smallest data package is now going to be our 100GB DSL data package.
From tomorrow your 20GB account is going to be upgraded for free to our 100GB package and for the next 2 months you will not pay us anything extra for this.
In other words on the 1st of April and 1st of May you will still pay only R29.00 but you will get 100GB instead of 20GB each month. You will also get free, unlimited data between midnight and 08h00 each day.
However, in April or May you need to make a decision:
You can choose to cancel your DSL with us any time before the 24th of May. If you cancel, your DSL internet data will stop working from June and you will not be charged.
Or you can choose to keep your DSL with us.
In this case you do not need to do anything: Your DSL package will automatically keep working and be upgraded to the 100GB for R99 per month option. You will then be charged R99.00 per month from the 1st of June. You will also automatically continue to get the full 100GB and free after hours data that this bigger package brings.
We are NOT just going to stop your R29.00 DSL data package and cut you off from the internet. We understand that being connected to the internet is important so we will make sure that your account keeps working unless you specifically cancel your package in your ClientZone.
So why are we doing this?
When you factor in all our costs we have always lost money on our cheaper DSL options since we first started selling them in 2009. And over time, as more and more clients have joined us, we've been losing more and more money every month on these packages.
We have absorbed this loss for as long as we could but we finally got to the point where we unfortunately have to do something about it.
These packages were always loss leaders for us and it was always our hope that over time either our clients would upgrade their DSL accounts to larger packages as their needs increased or our overall input costs would decrease and the cheaper packages would become sustainable.
Unfortunately this was not to be.
As with life most of our general expenses have increased over time. Added to this the increase in the number of clients using these cheaper packages has led to a massive increase in the amount of one-on-one support we have been needing to provide for these small packages. And we are already close to the bone on these packages even BEFORE any of our other Support costs are taken into account.
Our Support team is kept very busy with help requests relating to these smaller accounts as it takes the same effort, energy and time to support a R29.00 account as it does a R399.00 account.
This means that in order to continue to provide the best level of service possible we have needed to continually add to (and are still planning to add to) the numbers of our Support team so that we can deal with the extra quantity of work. This then also obviously increases our overall costs.
Our hope that clients would upgrade to bigger packages was not realised.
For example when we first launched the R29 in 2009 we offered only 1GB on that package. However, over the years we have continually added GBs to this package at no extra cost and at the moment you can get 20GBs on this package which means that many clients have simply not had to upgrade - While I am truly glad that our clients have been able to enjoy this for as long as they have it has meant that our loss leader strategy simply did not work as we had hoped.
So what does all this mean?
In order to still offer both great value for money and great service the lowest DSL data monthly price we can offer is R99.00 per month.
So our R99 package, which offers 100GBs of anytime data and free data between 0h00 and 08h00 every day, is going to be the lowest DSL data package we will be offering in the future.
I have tried to answer all the questions I think you may have below:
So how will this affect my R29.00 DSL package?
You will be upgraded now and be given 100GB of data at the SAME price for the next two months. So you will still pay only R29.00 on the 1st of April and the 1st of May. Thereafter, if you do not cancel your DSL package you will automatically be moved to our cheapest DSL data option - the 100GB at R99 per month.
Will my DSL Internet account just stop working?
No. We understand that your internet connection is important to you so we will not just stop your internet connection and data from working. If you wish to cancel your DSL then you need to do this. You will still pay only R29.00 for April and May, and if you cancel in the ClientZone before the 24th of May then we will stop your package from the 1st of the following month. If you choose to stay and do not cancel then your package will be changed to the 100GB DSL data package (our cheapest DSL at R99 per month)
Can I cancel my 20GB Capped DSL Data? How?
Yes you can. You can log into your ClientZone and cancel any time before the 24th of the month and you will not be charged for the next month. I.e. If you cancel before the 24th of April you will not pay anything in May. Your last payment will have been on the 1st of April for R29.00.
So if I choose to keep using Afrihost, what do I need to do?
You do not need to do anything. On the 1st of June your DSL package will automatically be changed to the 100GB DSL data package, and you will get 100GB of monthly data going forward. Your internet will keep on working as it had been.
What exactly will happen if I do not cancel?
You will get 100GB every month from now on, but you will keep paying only R29.00 for the next two months. Then you will pay us R99.00 on the 1st of June and each month thereafter while you continue to use us.
I understand that this is not good news.
And I am sincerely sorry that we have to do this. We have been losing money on these packages for the last 6 years and have always hoped this would change. However, due to the factors mentioned above, it has got to the point where we now need to act.
Thanks for your understanding.
And as always thank you for trusting us with your business.