Article: British telecom cuts ADSL rates by 25%

http://news.bbc.co.uk/2/hi/business/3852433.stm

Read and weep ...

[V]

-Professional information anarchist-
I support:
www.hellkom.co.za

Ah, the magic of competition

What I don't get is why they keep "cutting" prices instead of bumping up speeds. It is tragic. They're still selling 1 Mb services??

BT Broadband Basic - £19.99 a month, with 1 GB download capacity
BT Broadband - £24.99, 15GB
BT Broadband 1Mb - £28.99, 30GB


In Canada, prices have stayed the same pretty much, but to gain a competitive advantage providers are raising speeds instead of cutting prices.

Bell Basic DSL 128 Kb: £8.25 (no cap)
Bell DSL 3 Mb: £18.56 (no cap)
Bell DSL 4 Mb: £24.70 (no cap)
Cogeco Basic 5 Mb: £18.56 (no cap)
Rogers Extreme 5 Mb: £18.56 (no cap)
Cogeco Pro 10 Mb: £26.80 (no cap)


I think that both cutting prices and increasing speeds are important to gain a competitive advantage, but I prefer speed over price. Any thoughts?

Thoughts? We cant say squat with the situation here. Here you bend over and they do what they want.

I would prefer the speed increasing if the price stayed the same "ah we have more speed.. cool!" or increased by inflation + 5% or so each year. So each year you pay like 10% more and get a speed boost. Not like SA where next year you pay more and due to contention and implementation of *new* shaping etc you get LESS speed.

We will never have xMbps in SA. Or at least not while theres a Telkom or even a Telkom + SNO.

Sentech could well introduce uncapped (upto 2.5 or so Mbps) but it would cost the equivalent of about R4500 ($700+) which is a total ripoff. Take away Telkom and they can then offer a decent service. SAT-3 bandwidth must be sold to first-tier for cost + 10% instead of cost * 10 like it is at the moment.