South Africa: MWEB challenges Telkom

In South Africa, MWEB has announced changes to its Standard Uncapped Shaped ADSL and Business Basic products whereby data speeds will be increased at no additional cost to customers. In addition, MWEB will introduce a 6Mbps product and reduce pricing on their 10Mbps and 20Mbps standard uncapped products.

This comes in response to the recent ADSL line speed upgrade announcements. Telkom will be upgrading line speeds from November 2013 to February 2014. MWEB has indicated, however, that they are unable to make changes to their premium uncapped shaped and unshaped products until Telkom reduces their charges for IPC.

A number of MWEB’s Uncapped ADSL products will be automatically migrated early next year at no extra cost while Premium Uncapped products, which offer higher usage thresholds, remain unchanged. Their unshaped products, which currently have no usage thresholds, also remain unchanged.

If MWEB Premium Uncapped ADSL customers wish to upgrade their data products to match their new line speeds, they should call MWEB to discuss the options available.

“Whilst we welcome Telkom’s initiative to double the access line speeds at no extra costs to the end-user, ISP’s cannot be expected to absorb the costs of a corresponding increase in data products. We are currently in discussions with Telkom around a significant reduction in their wholesale IPC charges.  If these are not immediately forthcoming we will be referring the matter to the Competition Commission, asking them to intervene as a matter of urgency and force the issue.  We can then pass on the full benefits of the line speed upgrades to all of our customers.” says Derek Hershaw, CEO of MWEB ISP.

MWEB Standard Uncapped product changes: Data only prices

MWEB Business Basic Uncapped DSL product changes:

Staff writer