Many local ADSL subscribers visit their corner Engen convenience store or Pick 'n Pay to purchase bandwidth in the same way they would their weekly groceries. <\/p>\n
The low monthly usage limits, typically between 1 GB and 3 GB, which are associated with South Africa’s ADSL service, has resulted in a situation where many South Africans are bandwidth starved. <\/p>\n
Despite the increase in ADSL speeds from 512 Kbps to 4 Mbps, monthly usage allowances have seen the inverse happening.<\/p>\n
The default monthly usage allowance when ADSL was launched back in 2002 was 3 GB with unlimited local bandwidth after users had reached their cap. This was replaced with hard capping in November 2005, something which was severely criticized by the local ADSL fraternity.<\/p>\n
Telkom’s hard capping policy has created a gap for ISPs, like Axxess, OpenWeb and WebAfrica, to provide easy ways to top up bandwidth when capped. Many of these innovative ISPs have created user-friendly, online systems to serve the needs of users.<\/p>\n
Online purchases however require either a credit card payment or an electronic deposit, and there are a group of users out there who would prefer to purchase their bandwidth as they do prepaid airtime from the cellular providers.<\/p>\n
In came Axxess and Dotco. Both ISPs developed ADSL bandwidth vouchers which can be purchased from locations across the country.<\/p>\n
Franco Barbalich from Axxess says that they noticed a big demand from their customers for an easy way of paying with cash for bandwidth at a nationwide level. “That was where the idea came from to supply a prepaid voucher at easy, accessible locations around the country.”<\/p>\n
According to Barbalich the demand has surpassed their expectations. “The product has been around for 6 months with Engen and 1 month with Pick n Pay. We continue to see over 100% growth each month on sales as more and more people are becoming aware of the product,” says Barbalich.<\/p>\n
Axxess is also planning to add 5 new nationwide distributors to the current Engen and Pick ‘n Pay distribution channels.<\/p>\n
While monthly usage limits remain low and ISPs are restrained to reselling ADSL bandwidth per-GB these products are likely to gain in popularity. ISPs like Axxess have not only made the most of a lucrative business opportunity, but they are also making it as easy as possible for people to stay connected.<\/p>\n