Vumatel explains price hikes for Fibrehoods customers

Fibre customers who originally signed up for their packages through infrastructure provider Fibrehoods are facing price hikes.

In the past week, customers began receiving emails from their ISPs which warned them of price increases and line speed changes.

Vumatel has confirmed to MyBroadband that it is bringing the legacy Fibrehoods pricing in line with its standard prices.

This means that ISPs may have to pass the cost of the price increase to their customers, and it is currently unclear how this will be handled by major service providers.

Webafrica has sent out notifications to customers stating that their line speeds would be downgraded and their prices would be increased as a result of the change.

In its email to customers, Webafrica apologised for the price hikes and attributed the change to Vumatel’s price increase for Fibrehoods infrastructure usage.

One Webafrica customer’s uncapped 20/20 Mbps fibre package was lowered to 20/2 Mbps line while his monthly price was increased by R50.

Vumatel explains

Vumatel said that it upgraded and integrated Fibrehoods fibre after it acquired the company in 2016, part of which meant changing the old infrastructure pricing.

“In acquiring Fibrehoods in 2016, Vumatel embarked on a process to integrate and upgrade the acquired infrastructure and operations to meet the business’s and customers’ required service levels and standards,” Vumatel said.

“This included and necessitated an alignment of the legacy Fibrehoods pricing.”

These price changes were initially set to be implemented at the beginning of 2018, but Vumatel opted to postpone the changes.

“The alignment of all legacy Fibrehoods pricing to that of the standard Vumatel pricing post integration of the networks was originally intended to come into effect on 1 January 2018,” Vumatel said.

“A decision was taken to postpone this change allowing for more controlled communication and migration.”

The company sent notifications to all its affected service providers on 1 August 2018, stating that the new date for the pricing alignment would be 1 March 2019.

Vumatel said the price hikes allow it to run a sustainable, high-quality network with good service levels.

“This alignment allowed Vumatel to standardise its product offering and service levels, enabling a sustainable and scalable network and business that always delivers a high-speed, world-class fibre offering to all clients on the Vumatel network,” the company said.

Now read: Vumatel moves clients to slower lines and hikes prices

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Vumatel explains price hikes for Fibrehoods customers