Afrihost launched its first mobile data products on 20 August 2013, offering 5GB of mobile data for R145 per month on a month-to-month contract.
This is the best priced mobile data product of its kind in South Africa, but to sweeten the deal Afrihost threw in a free Huawei MiFi device for the first 1,000 sign-ups.
Demand for the service far exceeded supply, and Afrihost decided to give away more free devices to avoid disappointment.
In the end Afrihost gave away over 8,000 free MiFi devices. Afrihost said that the total cost of the devices and promotional 3GB free data amounted to over R22-million in value.
This raises the question of why a mid-sized Internet Service Provider (ISP) is giving away R22 million in value to its subscribers, and where it gets the money to do so.
Afrihost launched its first mobile data production 20 August 2013, offerings its subscribers a 5GB package for R145 per month. The product offers 2GB of standard data, with another 3GB of free data, at an effective rate of R29 per GB. This is a month-to-month product, which means that it competes against prepaid and recurring data bundles from mobile operators.