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Afrihost slashes ADSL prices

Afrihost discounts their ADSL prices

Afrihost slashes their ADSL prices to R29 per GB

I just received news from the Afrihost CEO that they are butchering their ADSL prices. As a late entrant into the ADSL market Afrihost have decided to invest money that would have been spent on advertising into cheaper prices instead.

As a result they are now offering a range of ADSL packages from 1GB to 100GB priced at R29 per GB.  The prices do stack up well against other ADSL packages when compared on the Broadband Chooza ADSL comparison page.

Gian, the CEO, explains their actions in his own words:

Why is Afrihost doing this? What are your motives? What’s in this for Afrihost?

Well here is the key question! Why would we willingly offer a package
where we will subsidise our clients going into the future?

We are doing this for 3 main reasons:

1.
We entered the ADSL market late and it is very competitive.
We felt that this was the best way to get a footprint in the market and
establish ourselves as one of the premier ADSL providers. We believe
that the market is ready for this offering especially, because of the
current news relating to South Africa’s high bandwidth costs, Telkom’s
stranglehold on the industry and Winston the pigeon’s beating Telkom
in a race to deliver data!

2.
We are hoping that this move causes a stir in the internet
community and somehow forces the bigger ADSL players (esp. Telkom)
to carefully consider how they are going to bring bandwidth charges
down. We would be absolutely delighted if this in some way causes
overall pricing to be reduced and thus provide a better deal for the
ADSL consumer.

3.
We believe that the Internet is an incredible tool that
can truly boost the development of South Africa into a first world country.
Unfortunately, at the moment time bandwidth is simply too expensive for many
people to be able to use the Internet. We believe that
if we can in some way speed up the decrease in the cost of connecting
to the Internet we will have made a significant contribution to the future
of South Africa.

However, having said all of this the truth is that we are an entrepreneurial
company focused on being profitable. We believe that this move will be
profitable to us in the long run.

We may very well lose some money over the next few years on the
new clients who sign up but we believe that this will expose more people
to our name and show people just what kind of value driven and awesome
service they can get from Afrihost.

The price cut is only a limited offer, but Afrihost aren’t letting on about how long it will be available for. Existing Afrihost customers have automatically had their accounts moved to the new pricing which suggests that maybe the prices are there to stay.

This is a bold move by Afrihost and it will be interesting to see how some of the established players respond. Don’t forget to keep comparing ADSL prices to make sure you are always getting the best deal.

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