R24 per GB ADSL offer
ICT company Redwill has recently launched its R24 per GB ADSL special, undercutting most competing Internet Service Providers (ISPs) in the market. According to Redwill they have “reserved 1 Terrabyte of ADSL Bandwidth, which you can get ADSL from R 24.00 per GB”.
Redwill’s ADSL bandwidth is ‘semi-shaped’ and provisioned by Internet Solutions, and all international bandwidth is routed over fibre optic links on SAT-3 or SEACOM.
There is however a snag which users should be aware of. Redwill says in its terms and conditions that the special offer will only apply to the first three months, after which normal pricing of R59 per GB will apply. There is however no long term contracts and subscribers can therefore cancel their plan with 30 days notice.
The minimum package size from Redwill is 2GB, and top-ups are charged at 5.7c per MB. The R24 per GB offer from Redwill is valid until 31 March 2010 or ‘until reserved bandwidth has been sold’.
R29 per GB barrier
In September last year Afrihost shook the local ADSL market with its R29.00 per GB ADSL service. Initially Afrihost anticipated that it would be a limited offer, but to date the company has not terminated this offer.
Afrihost effectively set the bar at R29 per GB for any new player trying to compete on price, and MyISP with its ‘R60 for 3 GB’ service and G-Connect with its 2.2c per MB broadband passport offering joined in Afrihost’s price war.
More established ISPs find it hard to match this pricing as it is effectively below cost, and hence there is no talk of any margin. Some prominent service providers have even suggested that this is a failed business model and that it will result in Afrihost either lifting their prices later on or going out of business.
Rumours however suggest that there are more innovative and low cost offerings coming from more prominent ISPs, and Telkom Internet has also recently announced that it will launch higher usage accounts in the near future.
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