Although @;antic quickly followed MWeb last week in lowering its ADSL pricing, the company says broadband is still too expensive in South Africa – but the root causes should be attacked rather than a price war erupting between ISPs.
Dederick Venter, marketing director of @lantic, says the cost of broadband is however still too high in South Africa.
“We support the reduction of broadband prices in South Africa and trust that this latest move from the third-largest consumer ISP in South Africa will force the hand of the incumbent operators who stubbornly protect their revenue streams to the detriment of consumers.
"As a developing country, South Africa needs a greater amount of broadband uptake and that can only be achieved by a reduction on wholesale prices and the unbundling of the local loop. Only once these issues are dealt with will we see truly competitive prices for the consumer.”
Venter adds, “It is not in the best interest of service providers to start a price war amongst ourselves but due to the constraints imposed by Telkom and the lack of decisive action from ICASA and the DOC we simply cannot afford to sit and wait any more.
“The lack of true wholesale options from the cellular providers and Telkom make it almost impossible to compete on equal footing. The commercial effectiveness and entrepreneurial spirit of companies like @lantic, however, still provides us with an edge over the larger operators.”