Johannesburg - Internet service provider company MWEB announced the launch of SA's cheapest uncapped ADSL connections on Thursday.
Packages start at R219 for home, and R349 for business customers.
According to MWEB, which is in the Naspers stable, these packages are 40% cheaper than their closest rival's.
Said MWEB CEO Rudi Jansen: "Internet penetration in South Africa remains below par - in fact, South Africa has fallen behind a number of other African countries in recent times.
"The lack of well-priced, generously-provisioned bandwidth has been holding us all back, and as a result we are missing out on an immense economic opportunity."
He explained that MWEB is introducing six data-only ADSL packages for consumers and businesses.
The consumer data-only products will cost R219, R299 and R539 per month for line speeds of 384Kbps, 512 Kbps and 4Mbps respectively.
The MWEB Business data-only offerings will cost R499 per month for a 384Kbps line, R699 per month for a 512Kbps line, and R1 999 per month on a 4Mbps line.
These services are available on any line rental package available from Telkom, even Telkom's Closer subscription bundles.
In addition, MWEB will offer three consumer all-inclusive packages (ADSL line rental included) for R349, R599 and R899 per month for line speeds of 384Kbps, 512 Kbps and 4Mbps respectively.
The all-inclusive offerings for businesses will cost R629 for the 384kbps option, R999 for the 512Kbps option and R2 259 for the 4Mbps package.
"In spite of the stranglehold that Telkom currently has on the internet market in South Africa, we felt that action of this significance was necessary to get South Africa to join the rest of the world and enjoy the social and economic benefits that broadband internet has to offer," said Jansen.
"This offer will enable South Africans to access and download content on scale never seen before. We have a real chance to lift ourselves from broadband mediocrity in South Africa, or we risk falling into broadband oblivion," he added.
The MD of research and consulting firm World Wide Worx, Arthur Goldstuck, said: "It has been proven that accessible technology builds the economy. This is the kind of catalyst we've all waited for; we hope it's the gambit all other providers will have to match. If it delivers what it promises, the consumer and business user and ultimately the country will be the beneficiaries."
MWEB said it will be utilising bandwidth on both Telkom's SAT3 and the Seacom international cable systems.
"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 South African market," said Jansen.
He added, however, that for any ADSL service to be successful a close working relationship with Telkom is needed as it still controls the last mile.
MWEB will continue to work with Telkom to ensure MWEB subscribers receive the best possible network experience in the country.
Jansen said that all business products from MWEB are unshaped, and as in the rest of the world, no bandwidth caps will apply to any of these services.
- Fin24.com