Big questions about massive price hikes and speed downgrades on major fibre network

Several major Internet service providers (ISPs) are crying foul over extreme price hikes on major fibre network operator (FNO) Zoom Fibre.

The FNO is also being accused of unethical business practices for exclusively selling more affordable offerings through its own ISP — Zoom Flex.

A reliable source in the industry recently notified MyBroadband about Zoom Fibre scrapping its three entry-level packages for third-party ISPs, resulting in substantial increases as high as R450.

From 1 June 2025, the FNO is dropping its 15/15Mbps, 20/20Mbps, and 30/30Mbps packages and forcing all the customers on those products to upgrade to the more expensive 50/50Mbps line.

MyBroadband subsequently obtained the full set of Zoom Fibre prices from another impeccable source.

It showed the only customers who may be glad for the upcoming changes are existing 50/50Mbps users, for which Zoom Fibre is reducing wholesale prices, excluding VAT, by 3.77%.

100/100Mbps and 200/200Mbps customers are retaining their current speeds with below-inflation wholesale increases of less than 3%.

However, 500/500Mbps and 1,000/500Mbps users are getting downgraded to 250/250Mbps and 500/500Mbps lines, respectively.

In addition, their prices will go up by around 3%, despite the 50% speed cut. This change is unprecedented among major FNOs, which have regularly increased speeds in the past few years.

Several ISPs have serious concerns about the increases but have not received feedback from Zoom Fibre explaining the reasoning behind the adjustments.

“We have lodged a complaint with Zoom and shared our concerns regarding these changes, but it seems like they are going ahead with them anyway,” one ISP said.

One source told MyBroadband there were rumours in the industry of major changes and lay-offs at the FNO, but there was nothing concrete at the moment.

“All our official contacts have left Zoom or aren’t responding, something is up,” a second source said.

The table below summarises the wholesale price changes on Zoom Fibre’s network. The actual rand pricing was not shared due to confidentiality concerns.

Zoom accused of undercutting third-party ISPs

MyBroadband also received a complaint from a resident in Vredenburg that Zoom Fibre started advertising its lower-end packages to people on the West Coast after communicating the wholesale pricing changes to third-party ISPs.

“Once the ISPs announced this to their clientele, Zoom Fibre began advertising their new service — Flex Hybrid,” they explained.

“This service allows them to sell lower-priced packages directly to the community on a prepaid basis, effectively cutting out the ISPs and offering much lower prices than what was initially available to them.”

“Many residents who decided to cancel their ISP subscriptions have been approached by Zoom Fibre’s sales teams in the streets, who are promoting Zoom Flex as an alternative ISP.

The complainant shared an image of a Zoom Fibre 20/20Mbps 30-day product being advertised through Zoom Flex for R289 per month.

This is around the same price that several major ISPs currently charge for the company’s 20/20Mbps line, which they will no longer be able to sell.

The Zoom Flex website shows 30/30Mbps, 50/50Mbps, and 100/100Mbps prepaid packages, selling for R239, R350, and R450, respectively.

What is noteworthy about these prices is that they are substantially lower than those charged by third-party ISPs.

Although third-party ISPs add their own margins to wholesale packages, open-access FNOs may not offer lower cost prices to their own ISP business.

Although some FNOs offer affordable prepaid packages, these are generally more expensive over an entire month due to their added flexibility or may be exclusive to lower-income areas.

In many cases, a month-to-month package in the same area will be cheaper than prepaid.

Although several other major FNOs have implemented or are implementing price increases in the first half of 2025, none have made anywhere near the significant changes that Zoom Fibre has.

MyBroadband asked Zoom Fibre for feedback regarding the reasons for its package adjustments and why its Zoom Flex strategy, but it did not provide comment by the time of publication.