On 16 May 2014, Afrihost Mobile launched its new out-of-bundle (OOB) service at a flat fee of 10c per megabyte (MB) across all its data packages. This is the lowest OOB data price ever in South Africa.
What makes this offer particularly impressive is that Afrihost is a wholesale client of MTN. This means Afrihost is undercutting the mobile operators despite the fact that it is a wholesale client of one of them.
MyBroadband asked Afrihost CEO Gian Visser how they are able to offer OOB data at such a competitive rate.
“As you know we have a wholesale agreement with MTN and they charge us a per GB rate for the data that we move on their mobile network,” said Visser.
“Since we are charged a standard rate for the GBs we move, we believe that our clients should also benefit from this and that we should charge them a standard OOB rate no matter what package they have with us.”
He added that they want to provide the most affordable connectivity possible, so they charged as little as they possibly could.
“We are also hoping that this will increase overall usage and help us to renegotiate better pricing which will hopefully help us extend the subsidised mobile data specials that we’re currently running,” said Visser.
Visser said that he does not know why Afrihost can offer an OOB rate of 10c per MB, while the operators typically charge around R1 per MB.
“I presume they take their client behaviour, network size, revenue and costs into account and then align this with their own strategic and financial goals. However, for me to say anything more than that would be guessing,” said Visser.
What people can expect from Afrihost in future
Visser said that consumers can look forward to many exciting developments from the company.
“One of the biggest barriers preventing people from making use of Afrihost Mobile data – if they are not MTN contract clients who can easily use the Afrihost APN – is that they have their mobile data integrated with their voice contracts on one SIM,” said Visser.
“We are hoping to do something that’ll help get Afrihost mobile data into more people’s hands.”
He added that Afrihost is 100% committed to bringing affordable, seamless and easy internet connectivity to everyone in South Africa in a way that it is convenient to them – whether that be in their homes, on the road or at the office.