ADSL price increases explained
Many consumers were surprised when they were informed that their uncapped ADSL services will cost more from the 1st of January 2009.
Internet Service Providers like Web Africa and Axxess alerted subscribers to these increases last month. “Due to our upstream providers rate increase, we are unfortunately required to increase our rates accordingly. As of the 1st January 2009 our DSL Data Uncapped IS and Uncapped Express IS accounts pricing will be updated,” read a Web Africa email.
These increases were necessitated by an increase in price from Internet Solutions (IS), which in turn explains that the poor exchange rate and high inflation left the company with little choice but to lift prices.
“Apart from our Africa and Hosting product suite, IS has not implemented a price increase in over 5 years and on the contrary has proactively approached customers to offer additional services for the same billing or offer a reduction in billing when our input costs have dropped over the years,” explains IS’s General Manager for Internet Access, Alan Bacher.
“The depreciation of the R/$ exchange rate by over 50% over the past year has affected us due to the fact that a large proportion of our International Private Leased Circuits (IPLC) are Dollar based as well as our overseas Transit & Peering links which are 100% Dollar Based. Another factor in the pending price increase is inflation in excess of 13% which has increased our cost base,” said Bacher.
The price increase will influence all services other than GSM, dial-up and ADSL (apart from Business ADSL which will increase). The company however pointed out that they will pass on any savings to customers, as may be the case with international bandwidth when SEACOM lands.
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