iBurst has responded to MTN and Sentech’s latest price reductions with a ‘Data Bonus’ to all users. The company claims that they will now be the most cost effective in the market, but this claim seems very dubious.
iBurst today announced that they will launch their new Data Bonus on the first of March, and claims that this will make them: “the most cost effective in the market”. Subscribers will receive an additional 200 megabytes of data free on iGo Lite and iGo contracts and an additional 500 megabytes of data free on all G1, G3, G6 and G9 contracts.
“Existing subscribers on 12, 24 and 36 month contracts will also benefit from the additional data allocations, which translate into a 49% reduction in the per-megabyte price on iGo Lite, for example. iBurst now offers the cheapest in-bundle rate at 39 cents per megabyte on a 1 Gig package and 12c per meg on a 9 Gig package,” iBurst said.
Sentech recently upgraded their speeds to 1 Mbps and cut their prices on all their products.
Sentech’s 1 GB package is now priced at R 299-00 per month, which gives a per-Meg pricing of 29c per Meg. This is far lower than iBurst’s 39c per Meg on the same package. MTN’s recent offer of 2 GB for R 399-00, which translates into around 20c per MB is also much cheaper than iBurst’s 39c per Megabyte.
Sentech’s 10 GB package is priced at R 999-00 or 10 c per-Megabyte, again cheaper than iBurst’s 12c per Meg.
iBurst’s claim of being the most cost effective in the market looks clearly inaccurate, and in this price sensitive broadband environment such claims may not go down well with consumers.
iBurst said that they will also launch Data Carryover on 1 March. iBurst said that ‘customers will now be the first broadband subscribers able to carry over the unused portion of their monthly data allowances to the following month.’
“iBurst doesn’t believe in fine print and this is not a promotion of limited duration,” said Thami Mtshali, CEO of iBurst.
iBurst subscribers will appreciate being able to carry over their unused data as this will help them to balance their Internet usage from one month to the next. Subscribers will be able to carry over unused data up to a maximum of their monthly data allocation.
iBurst’s claim that they are first to market with data carry over is however another very suspect claim. Many ADSL subscribers are already enjoying the benefits of data carryover from ISPs like WebAfrica and Cybersmart. These carryovers are also not time limited like the iBurst offer.
It is encouraging that iBurst has added some value to its current offerings, but with both MTN and Sentech cutting prices and increasing usage allowances some consumers may feel that iBurst could have done better.