Ispa warns against forced fibre upgrades

THE INTERNET Service Providers’ Association of SA (Ispa) sounded caution yesterday on Fibre Network Operators (FNOs) forcing fibre upgrades on consumers, because it may come with a cost.

Ispa is an industry body representing the interests of more than 220 ISPs.

It said while upgrades advertising “more for the same price” were good news for most consumers, FNOs shouldn’t assume forced upgrades made sense for everyone.

“In today’s challenging economic climate, not all consumers want (or need) a faster service. Some consumers would prefer to experience the same speed service they previously enjoyed, and simply pay less for it.

“Often the faster FNO service comes at the cost of margins ISPs operate on. FNOs can therefore directly influence the financial viability of ISPs and the competitive market, which has taken decades to construct,” it said.

South Africans face onerous data costs and amid a cost-of-living crisis it forces people to choose between buying food or, for example, growing businesses online.

Expensive internet services widen the so-called “digital divide” between the world’s tech and internet haves and have nots, according to the UN, which says about half the global population falls into the latter group.

One gigabyte of mobile internet in South Africa cost $2.04 (R37.18) on average last year.

According to Statistics SA, South Africa ranks 135th out of 233 countries worldwide for the cheapest mobile data.

Out of 57 plans measured in South Africa, the lowest price observed was $0.07 per gigabyte for a 30-day plan.

Ispa said a “free upgrade” was not always free to the customer or the ISP because sometimes an upgrade means replacing existing equipment with higher performing equipment that could support the faster speed.