iBurst has introduced two new fees for services which were previously free, a move which may surprise some segments of the broadband industry.
iBurst has announced that from the beginning of May there will be an activation fee for new iBurst subscribers of R 99-00. The company further introduced a fee of R 171-00 for all downward migration on month-to-month packages.
These price increases follow on the heels of their much criticized out-of-bundle price hikes a few weeks back.
iBurst said that these new fees were needed “to bring iBurst’s pricing more in line with the industry.” They further indicated that these additional fees would help retain customers and discourage the downward migration of month-to-month subscribers.
“As part of its commitment to becoming a world-class wireless broadband provider, iBurst constantly evaluates the way it does business. After studying industry standards and norms, iBurst decided to introduce two categories of fees that other providers have always charged,” the company said.
Activation fees are however not necessarily the norm, casting a shadow of doubt on iBurst’s claims.
Sentech had an activation fee when they first launched their broadband services a few years ago, but it was scrapped back in 2005 and currently none of their broadband offerings carry any activation fees.
Telkom has also done away with activation or installation fees when opting for their self install option, and is in fact giving away a free ADSL modem to clients going the self-install route.
While MTN and Vodacom have general activation fees for all new contract subscribers, there is no activation fee for new pre-paid subscribers using their broadband offerings. Existing contract subscribers can also start using their broadband offerings without paying an activation fee.
iBurst’s new activation fee applies to both month-to-month and contract subscribers.