Fibre2.08.2024

R1,000 for a 3-year-old router — What ISPs charge for keeping routers after cancellation

Internet service providers (ISPs) in South Africa have different approaches for returning routers provided with fibre-to-the-home (FTTH) packages after cancellation and how much they charge customers who choose to keep these devices.

ISPs generally provide customers with a router at no extra charge that is free to use for as long as the customer retains their subscription.

That ensures they can get connected quickly with a minimal initial uptake cost.

A former RSAWeb customer recently complained to MyBroadband after the ISP tried to charge him significantly more for an old free-to-use Wi-Fi router when he cancelled his package three years after initial sign-up.

The customer in question wanted to move to another gaming-focused ISP with better pricing.

He explained that RSAWeb offered the option of having the TP-Link Archer A5 AC1200 router collected by a courier at their address in Durban or to buy the router.

The courier option would cost R195. Due to their location, the option to drop the router off themselves at an RSAWeb office was not viable.

To buy the router, a support agent advised they would have to pay R1,000, which the customer thought was exorbitant when compared with the prices of similar routers online.

The terms and conditions of the customer’s contract with RSAWeb said they would be charged a “reasonable” value of the router if not returned or the “retail value of the router at the time of cancellation”.

The customer negotiated with the agent, who said their manager had agreed to let the router go for significantly less. The customer initially offered R500 but agreed to pay R650.

MyBroadband asked RSAWeb for the reasoning behind the initial R1,000 price of the router, taking into account depreciation after three years and market-related retail pricing.

The ISP said that the customer had received an upgraded router instead of the regular TP-Link EC220-G5 AC1200 provided to most customers because they chose a higher-speed connection.

“Other major ISPs would have charged the customer upfront for the upgraded router to handle higher line speeds,” RSAWeb said.

At the time of publication, MyBroadband identified the cheapest price online for this router was R889 at Romtech, while the most affordable price on Takealot was R1,069.

RSAWeb said it was the industry standard for ISPs to charge the customer the retail value of the router if it is not returned upon service cancellation.

We asked several other ISPs about their approaches to returning routers and what they charged if customers chose to keep them. Below is the feedback we received.


Afrihost

Afrihost told MyBroadband that it currently provides an optional free TP-Link EX511 Wi-Fi 6 router with selected fibre orders.

The router can also be bought standalone for R999 via the Afrihost website.

It does not require customers to pay anything for the router if they cancel their package.

“Wi-Fi routers can be reused when switching providers

The only case in which an Afrihost customer would pay an extra fee is if they cancelled their package within six months of activation or their account had fallen into arrears.

“This cancellation fee has nothing to do with the router,” Afrihost said.

Customers on Vuma Reach, Openserve Web Connect, and Frogfoot Air do not get a free router as the installation includes a fixed Wi-Fi device installed at the premises.

In addition, customers who cancel their subscription after receiving the free router but before the package is activated must return the router undamaged and in its original packaging within 14 days of cancellation.


Mweb and Webafrica

Webafrica acquired Mweb from Dimension Data in 2023.

Although the companies are operated separately, their approaches to returning or paying for free-to-use routers are similar.

The ISPs’ communications head, Greg Wright, told MyBroadband that Mweb currently provides either the Zyxel EMG3525 or EX3301 as free-to-use on its FTTH packages, while Webafrica offers the EMG3525.

The ISPs plan to standardise their free-to-use range to offer Wi-Fi 6 on all new free-to-use routers.

Mweb and Webafrica also allow customers to have the router collected or to pay a fee to keep it.

If a customer prefers to return the router, Webafrica generally covers the cost with a reverse logistics option. Mweb is rolling out the same system in the next few months.

Both ISPs charge a “market-related retail price” for the router if a customer opts to keep it, although Wright said most returned their routers.

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