Double-edged ADSL price sword
10 December 2010
Fixed broadband costs will continue to decline next year, benefiting end-users, but the lower price points will lead to consolidation in the industry and the collapse of smaller Internet service providers (ISPs) that cannot keep up with declining costs.
SA's broadband price war started near the end of last year, when local businesses like Afrihost and Axxess took on the market with far cheaper per-gig rates. Then, in March, MWeb led a charge that resulted in a slew of uncapped broadband offers over ADSL.
MWeb's uncapped gauntlet was accepted by several industry players, including Vox subsidiary @lantic and Afrihost, which dropped prices and offered a range of uncapped offerings.
Industry expects price cuts to continue falling, but lower price points could see smaller players without a large backbone ֖ or a value-add service bought out, or wiped out. However, no one can put a...
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