Internet service provider (ISP) WebAfrica has become the third in South Africa to join the price war started by Telkom, reducing home uncapped ADSL prices by 32 percent.
Telkom’s new lower uncapped prices were made available from last Friday, prompting rivals MWeb and now WebAfrica to lower their own prices.
WebAfrica said the new prices were a response to Telkom’s move as well as the shift in their own ADSL traffic from its own network to Internet Solutions.
Savings of R10 per month can be made on WebAfrica’s 1Mbps package, while customers can save R300 per month on the 10Mbps home product. The 4Mbps product has gone down by R160 to R339 per month.
WebAfrica CEO Tim Wyatt-Gunning last week criticised Telkom for cutting their prices so aggressively “while turning a blind eye to cutting prices in the area which would actually stimulate growth in ADSL, being the line rental prices”.
Telkom, part-owned by the South African government, reduced its prices by up to 40 percent, undercutting its main competitor MWeb, who then responded in kind by undercutting Telkom by 10 percent on its throttled uncapped products.
