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Tags >> Connection Costs
Mar 23
2010

Could the latest offering by MWeb be the start of the ISP shake up that we have been waiting for?

Posted by Dissol in MWeb , Internet Access , Connection Costs

Dissol

So...MWeb is taking the jump, and offering uncapped Internet connection at a reasonable price (as reported elsewhere on MyDL).  I am sure that the other providers cannot ignore this, and we should see a rash of similar offers over the coming weeks...  Hopefully it will herald a chance for many people living in South Africa to be able to use the Internet in the way it is used elsewhere in the world...  Exciting times!!!!

The offer (which is claimed to be over 40% cheaper than any other package) does get me thinking however...  In global terms it is still not exactly cheap, but certainly a move in the right direction, and I am sure than competition will help push it further down.  However, the offer does raise some issues; how are they able to reduce their price by this huge amount?  Without some quite remarkable breakthrough in technology (which I must have missed), then they must be making an absolute fortune out of all of us at the moment (as the other providers continue to do).

Compare this to anything else...say a car purchase.  You look at the market, and find a variety of manufacturers offering models which suit your needs, the prices are all very similar...and you decide to plumb for a model.  Soon afterwards one of the manufacturers offers a massive 40% reduction in the cost of the car.  Huh?  How is this possible?  Is it made of cardboard (like Trabants were, I am not kidding)?  No, it is the same model.  But...what is the difference...how can they still make money selling you this car?  Well, they can...that is all you know...  So how do you feel as you get into your car, knowing that you have been ripped off, to the tune of 40%...  I don't know about you, but I would not be happy...and I would have some serious questions for the salesman, and also the salesmen of other brands...  We were led to believe that the prices were the lowest they could get away with charging, and the problem was the government, the connections to the outside world, anti-competative practices by the big players, etc, etc.  But none of that has changed...  So that must have been bullshit...  This means that we have all been ripped off for years...

Makes you think...at least it did me.

Anyone know of other ISP's also dropping their prices to compete?  Anyone else really pissed off, as they also bought an expensive uncapped account recently?