Utande, a local internet service provider, has revised its WiMAX broadband service tariffs downwards. Effective today, 1 November, the price of its 2GB data bundle has been reduced by 14% to $60. The old price of the 2G bundle was $70. The reduction comes a little under 5 months after launch of the service.
Utande has also introduced a 1GB bundle priced at $35.Previously the company only had 3 bundles, the 2GB one, a 6GB and a 12GB one. The tariffs of the 6GB and 12GB bundles remain unchanged at $140 and $240 respectively.
We tested and reviewed the service ourselves when it was introduced ad we really loved the stability, but the price was something else. There are just lower priced services on the market, albeit not as stable or not delivering the 1Mbps that uMAX does consistently. It’s a tradeoff and for us price was the deciding factor. Maybe that’s been the case with other prospective users as well, hence the reduction.
We spoke to Mike Weeden, General Manager at Utande, and he says the reduction of the 2GB bundle is meant to grow the numbers as they believe it’s going to be the most used bundle. As for the introduction of the 1GB bundle Weeden explained that it’s designed to add some flexibility to the service by catering for those customers that run out of their regular larger bundle before they have enough money to replenish it. Weeden wouldn’t disclose what the uptake of the service has been since launch only commenting that the most popular package so far is the 6GB one.
So far Utande has introduced Indoor and Outdoor (roof installation) WiMax installations. The company does not offer a dongle based alternative like its competition – Econet, Africom, Telecel, NetOne and the other internet providers – do. The Utande model has been to attract customers based on providing high quality of internet service and not necessarily competing on the basis of price.