I love how everybody (including the media) conveniently ignores ICASA's ADSL regulations published in 2006....
http://mybroadband.co.za/nephp/?m=show&id=4240
“Local bandwidth usage shall not be subject to the cap.”
Local bandwidth is supposed to be uncapped... there is no mention of charging for it. ICASA meant to say "
FREE and uncapped", but in their expert manner they conveniently forgot to specify what this actually means.
But the proof is what happened in 2005 and prior. We all had free unlimited local at that stage. ICASA was trying to restore that state.
Telkom took advantage of the loophole and started limiting, restricting and charging for local bandwidth. This was not in the spirit of what ICASA had intended. But Telkom is so used to flouting ICASA with no sanction whatsoever, and the regulator is so toothless and neutered that they completely failed to enforce their own regulations.
Along came Mweb who instituted free and uncapped local bandwidth and we all shouted Hooray, somebody who finally wants to abide by the regulations.
Well, we forgot that the telecomms industry in South Africa is fueled by greed. pure and unrefined greed. And Mweb, even though the uncapped was not costing them, bowed to the greed and has pulled Telkom as well. so much for competition!
Remember that Mweb is an IECNS licence holder and has already started building its own network. there is no reason why they should continue to be bound by Telkom except greed alone.
Mweb, why not be pro-active and make the local cap much larger? why charge R30 a gig? why not R10 or even R5 a Gig? The answer is greed.
But this will come back to bite them and they will lose all the additional customers they signed up because of the promotion. Well done Mweb, sterling business strategy! Your strategists deserve a bonus!
As for me, I don't even pay for my mweb subs. My Dad pays it so he can keep his mweb e-mail (against my advice), but now I will be cutting him down to the minimum payment needed to retain that address, and eventually we will cancel that as well.
Well done Mweb, in this case you will go from R380.00 a month to R0.00 a month!