Cool Ideas recently increased its fibre prices on Openserve and Vumatel’s networks. These price changes will come into effect on 1 March 2020.
The price increases from Cool Ideas followed an announcement by Vumatel that it is increasing wholesale prices on its entry-level fibre products.
Vumatel explained that load-shedding and increased maintenance costs forced the company to increase the prices on some of its products.
Openserve’s high IP Connect (IPC) costs are also putting financial pressure on ISPs which offer uncapped products to their clients.
ISPs are forced to buy IP Connect bandwidth from Openserve as it is the only way to provide Internet over the company’s ADSL, VDSL, or fibre-to-the-home networks.
The high price for this bandwidth and the growing use of data by uncapped fibre subscribers means that many ISPs make a loss on Openserve products.
While Cool Ideas announced price adjustments to address Vumatel’s price increases and Openserve’s high IPC prices, other ISPs are still assessing what to do.
ISPs which MyBroadband spoke to said it is becoming difficult to absorb the increased costs, especially when they are already subsidizing a free router and installation.
Announcements from these ISPs regarding potential price changes are expected in the next three weeks.
ISP Uncapped Fibre Price Comparison
The tables below provide an overview of uncapped fibre prices from prominent ISPs on Openserve and Vumatel’s networks.
Uncapped Fibre Prices on Openserve
Uncapped Fibre Prices on Vumatel