Lease Line services at ADSL prices

[paarlberg]

BASPNET BW Express Service
Lease Line services at ADSL prices or better
70% or more off SA normal pricing for similar/same services

Due to the recent changes by Telkom with the ADSL pricing structure BASPNET has decided to offer lease line services at near new ADSL pricing. This pricing is similar to what was available in the US about 4-5 years ago, still not as low as we want or deserve in SA. However, in order to keep the ratios in line with international services and provide quality services to businesses, we are not able to reduce the pricing any lower at this time. This is not a hybrid product where ADSL, wireless or another service is used for browsing and other services, it is pure Ethernet/Fibre/Diginet/MARTIS connectivity. All bandwidth will be fully routable from the internet.

With the new pricing structure from Telkom an unlimited 512k ADSL service will cost the ISP approximately R16000 per month + VAT.

Since BASPNET would need a minimum signed client base to provide the services at these prices, it is not immediately available.

Below are the speeds that may be offered

512k
1024k
E1 (2 mbps)
5 mbps (limited number of slots available)
10 mbps (limited number of slots available)

Final pricing is still yet to be determined, but is expected to range from R9500 to just over R125000 for the services listed above. Contention ratios are expected to be on par with US standards for lease line services. The final product specifications are still in the mid to final design phase(s) and will be determined prior to accepting contracts for the service.

If you are interested in more information please send and e-mail to
sales@baspnet.net and use "BW Express" in the subject.

Regards,

David Edwards

[rpm]

Hi Paarlberg

Can you please explain how R 9500 to R 125 000 is 'at ADSL prices'.

Regards,

RPM

[paarlberg]

Please review the posting above.

"With the new pricing structure from Telkom an unlimited 512k ADSL service will cost the ISP approximately R16000 per month + VAT."

Our 512k and possibly the 1024k service is less than that. These are excellent prices for South Africa. Price 512k and 1024k lease line services in SA.

[rpm]

Hi Paarlberg

To the best of my knowledge Telkom will not have an unlimited option. IS, DataPro, MTN-NS and others do, and the cost there is between one and two thousand per month. Yours might be good prices for leased lines and dedicated BW, but it is certainly not close to what ADSL costs.

Regards,

RPM

[paarlberg]

You won't be able to buy the unlimited from Telkom/SAIX. However, ISP's are able to offer accounts with different cap levels if they do their own authentication. This is based on the info received from SAIX directly.

There is a posting on www.myadsl.co.za about the new rates.

David

[mbs]

Methinx it is somewhat disingenuous to compare a leased line service to an unlimited ADSL service, even though the pricing models do seem to bear comparison and point to the fact that your service is favourably priced to the consumer. The point is that ADSL is a 'mass uptake' service utilising existing last-mile copper that should be available at vastly reduced prices to the soho/residential client base, whereas leased-line services are not. MyADSL is fighting for realisation of the former...

[paarlberg]

I agree 100%. However, many businesses have been forced to use a sub-standard ADSL service in SA due the normal extremely high cost of Lease Lines. We are trying to bridge the gap while providing a quality service and much better prices.

I was only making a comparison of the pricing and not the services. The current ADSL offering is low use residential service IMHO, where Lease Lines are for the business market.

[Clipse]

welldone paarlberg, your pointing to myadsl and this is myadsl/broadband forum. Those prices you mention is excluding line rental from telkom and only isp cost right?

Then it looks in line and not to much reduced from the actual cost its allways been.

[paarlberg]

As a reference, a 1mbps service from one of the Tier 1/2 providers will cost approximately R44-R60k per month plus Telkom Diginet/Martis line access rental. Our pricing will be in the range of R14-R20k based on current estimates. That is a substantial discount and the service would be comparible if not the same.

[Clipse]

paarlberg - if that total includes all costs, then its ALOT cheaper, I agree. Indeed great value for businesses who can afford it and requires it.

[paarlberg]

The price above is excluding any telkom link costs and VAT. This is the same for the other providers as well. The base bandwidth is at substantial savings and many companies would be willing to trade in a 512kbps link for an E1 and possibly save on the ISP fees and an overall savings depending on the distance between them and our proposed new data center for this service.

We know that there will be skeptics and critics of the service due to the pricing, but it does show you how much others are making off the same/similar service.

[cyber_d]

so who pays these prices?
us the end user or the 1/2 tier ISP's?

which then leaves this dilema... if the ISP pay so much - how is this gonna help us?

these lines will be multiplexed in their *** just to make it profitable
?

please advise

also \\\

ntu lines have SLA's
adsl doesnt

[paarlberg]

For me to realistically compare your offering with ADSL & current leased line offerings can you answer the following questions:

- How much is the Telkom link cost you refer to?
- How much does your leased line router cost?
- What is the installation cost?
- Do you get the same SLA as with normal leased lines (e.g. same guaranteed uptime)?

The Telkom link is based on distance and speed. For example a 256k between CPT CBD and Newlands (CPT) is about R3500, the same link between CPT CBD and Paarl (about 50km) is R5500. These are estimates based on previous links/quotes from Telkom.

Our Cisco 1601 is R600 per month (might include in monthly price)

Telkom has a normal installation cost of R2000 for 512k and under links and depending on their infrastructure this could be higher for 512k+ links. We are still reviewing our installation costs for the service.

We will offer an SLA on the service and are still reviewing what will be our base SLA and what we would/could offer as an additional add-on SLA to meet client requirements should that be needed. Since most providers offer different items and conditions in their SLA, I would have to say it would be comparable to the standards currently in SA and overseas.

I am sorry the answers may not be complete or enough to satisfy your questions, but we are still working out some of the final design of the service and what we will and won't offer in order to keep the pricing fair.

David

[paarlberg]

so who pays these prices?
us the end user or the 1/2 tier ISP's?

which then leaves this dilema... if the ISP pay so much - how is this gonna help us?

these lines will be multiplexed in their *** just to make it profitable
?

please advise

also \\\

ntu lines have SLA's
adsl doesnt

Which prices?

The subcription ratio will be very good. It is designed to be a highly burstable service. If you go to any ISP in the world, regardless of their claim to be 1:1 or other ratios are all oversold. Most providers bank on the fact that not all clients will be at 50% utilization 24x7. If they were, the internet would not exist as it does now, it would not be cost effective to offer any services.

[paarlberg]

Hi Paarlberg

Can you please explain how R 9500 to R 125 000 is 'at ADSL prices'.

Regards,

RPM

I forgot to mention earlier. The estimated pricing for the new service is about R30 per GB of traffic vs R60 for ADSL. This is based on the price divided by the maximum traffic that could be handled in a month. So it is actually about half the price of ADSL bandwidth then.