Local Internet Service Provider (ISP) Cybersmart has recently launched their first ‘ADSL Auction’ where subscribers are given the opportunity to bid on spare capacity on their network. This auction is restricted to Cybersnmart subscribers who purchase their ADSL circuit from the ISP.<\/p>\n
The first auction was for 10 GB of top-up data which eventually sold for R454 after 3 days of active bidding. Since then Cybersmart ran a number of top-up auctions and is currently running a 1 month uncapped internet service auction, which includes ADSL access charges, with the leading bid standing at R1125.00.<\/p>\n
“I have never seen spare capacity being auctioned off in the ISP space and we thought it quite a nice idea for the customer to determine the price,” says Cybersmart CEO Laurie Fialkov. “Auctions are very popular in almost all industries and it seemed strange to me that spare bandwidth had not been auctioned off by ISPs.”<\/p>\n
“There have been a couple of silly prices on offer recently, where new entrants in the market are attempting to buy market share with loss leading products. It is not viable for us to discount our entire client base because someone is currently running a special offer, however our auctions afford us the opportunity of beating any special offer that may currently be available and our customers are then able to determine what they are prepared to pay for it.”<\/p>\n
While the firsts few auctions were typically high usage and uncapped accounts, Fialkov said that they are planning lower usage account auctions over the festive season to give their subscribers the benefit of utilizing spare capacity on their network.<\/p>\n