Summary: MWEB CEO Rudi Jansen welcomes Telkom’s uncapped ADSL products, but feels that MWEB’s products remain competitive. Other ISPs also welcome the move.
Telkom launched their first uncapped ADSL products on 30 September 2011, starting at R219 for a 384kbps account, with 1Mbps priced at R269, and a 4Mbps/10Mbps service going for R2,097.
The launch of Telkom’s uncapped ADSL products comes 18 months after MWEB stunned the market with their affordable uncapped ADSL products.
The advent of affordable uncapped broadband services in South Africa can be credited to MWEB CEO Rudi Jansen who was behind the launch of MWEB’s uncapped ADSL packages in March 2010.
“With Uncapped ADSL now the norm for fixed line access we can really start on the journey of creating jobs and achieving more growth. I am very happy that MWEB could be part of this process,” said Jansen.
Jansen added that the increased competition is good news for consumers. “Differences such as Telkom throttling the user but not shaping traffic and MWEB only shaping traffic, not throttling traffic, will become important when subscribers choose their ISP,” said Jansen.
Jansen concluded that he is happy that MWEB’s current uncapped products compare favourably to the new Telkom products.
“They can certainly make it work well if they want to because they have the biggest network by far,” said Fialkov. “The question is whether it is profitable for them to do so and whether the speeds of the uncapped offerings are going to be reasonable.”
“An uncapped product can be very profitable if you manage to attract the correct mix of users, I am guessing they believe most of the heavy users are at other uncapped ISPs,” said Fialkov.
Web Africa’s COO and co-founder Rupert Bryant said that it is good to see that Telkom is bringing some competition to the market, but sent a warning to the local ISP market that they have a few big plans as well.
“We’ve got some exciting things planned ourselves, so they’re going to need to make sure that they keep this up,” said Bryant.