Following a press release issued by Cape Town-based Internet service provider (ISP) M-Web slating Absa Bank`s free Internet offering, Absa has responded by taking legal advice regarding what it calls "the allegations". Affinity, Absa`s UK Internet partner, has called the press release attack "unprofessional".
The press release, entitled: "Affinity and Santie Botha [Absa group executive director] misleading public," states numerous incidents of failed free ISP business models.
"M-Web CEO Antonie Roux seems to be deliberately confusing business models," responds Affinity CEO Wayne Lochner. "Free Internet access and free phone calls is an unsustainable model. Absa offers a free subscription model with pay telephone access."
In the press release, Roux claims that Absa`s brand is at risk: "Around the world it has been proven that free Internet models do not work."
Lochner says Roux`s statements are "not very professional" and he believes this latest round of mudslinging may have been inspired by Affinity`s intentions to offer the free Internet model through other partners in SA soon. "At the end of the day, the consumers will make their own choices," says Lochner.
A response from Absa is expected later today, after the bank has consulted its lawyers.
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