Afrihost is discontinuing all capped DSL packages smaller than 100GB from 1 June 2017.
Afrihost said that when you factor in all the costs, it has always lost money on cheaper DSL options.
“Over time, as more and more clients have joined us, we’ve been losing more and more money every month on these packages,” said Afrihost CEO Gian Visser.
“We have absorbed this loss for as long as we could, but we finally got to the point where we unfortunately have to do something about it.”
Visser said the company’s general expenses have also increased, and the high number of subscribers on the small accounts has led to an increase in the amount of one-on-one support.
“Our support team is kept very busy with help requests relating to these smaller accounts as it takes the same effort, energy, and time to support a R29 account as it does a R399 account,” he said.
“To still offer both great value for money and great service, the lowest DSL data monthly price we can offer is R99 per month.”
Afrihost subscribers who are currently using capped packages smaller than 100GB will automatically be upgraded to 100GB packages free of charge in April and May.
These subscribers must then decide whether to stay on a 100GB package for R99 per month, or cancel their service.