MWeb throws down gauntlet to rivals - TechCentral

MWeb throws down gauntlet to rivals

Rudi Jansen

MWeb, part of media group Naspers, has thrown down the gauntlet to its rivals in the Internet service provider market, slashing the price of fixed-line broadband, in some cases to as much as 40% below its rivals.

The company will offer uncapped ADSL data starting at R219/month for a shaped, 384Kbit/s service; a shaped 4Mbit/s uncapped service will cost R539/month.

In all, the company is introducing six data-only ADSL packages for consumers and businesses, it says, including options where Telkom broadband line rental is included, ranging in price from R349/month to R899/month.

It’s business data-only offerings cost R499/month for a 384Kbit/s line, R699 for a 512Kbit/s and R1 999 on 4Mbit/s. All-inclusive packages on the business offerings cost R629, R999 and R2 259 respectively. All business products are unshaped, come with fixed Internet Protocol addresses, and are designed for “throughput of business applications not usually associated with consumer products”.

MWeb says it will consolidate its ADSL offerings into a simpler product portfolio and is also cutting the price of its capped products. For example, a 1GB “no-frills” service has been reduced to R69 from R89 previously.

MWeb says it has been able to introduce the new packages as it has recently achieved so-called “tier-one” status, enabling it to reduce its reliance on bandwidth from other service providers.

“We will be using bandwidth on both the Sat-3 and Seacom international cable systems in order to have full redundancy on our international bandwidth,” says MWeb CEO Rudi Jansen (pictured). “We signed up with Seacom in March for a long-term agreement and we are purchasing significant bandwidth as Seacom provides MWeb with a very attractive solution for international network capacity, at the best price currently available to the SA market.”

Fixed-line broadband prices have fallen significantly in recent months, with smaller providers such as Afrihost and Web Africa setting the pricing agenda. MWeb’s entry into the market could provoke similar price cuts from other large Internet service providers in the months ahead.  — Duncan McLeod, TechCentral

9 Comments

  1. kevinswan007 on

    there must be a catch somewhere.
    anything too good to be true, usually turns sour, especially in the broadband sector.

  2. As has been widely point out on twitter this morning, there are numerous catches all over the place in the T&C’s.

    Catch a wake up. Read the small print. Don’t belive the hype.

    (This comment has been edited – Editor)

  3. pierre cronje on

    Pity the uncapping it is on ADSL only and not on their 3G services. ADSL’s Achilles heel is that TELKOM is part of the chain which still renders the service unreliable and subject to poor service levels.

  4. AfriHost has capped offerings for R29/GB. So only if you are using more than 9GB a month will this uncapped offering be worthwhile. MWeb is a ripoff with their R69/GB offering.

  5. Pity that we still sit with helkom! I had a adsl line with them and it cost me about 1500 per month running my business. Now with neotel and using my cell phone only, dropped it down to just over 500. If MWeb can just offer this on 3G, I’ll also go for it!

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