Hi guys, just wanted to ask a newbie question, so please bear with me.
Correct me if I am wrong, but as I understand, there are 2 backbones in SA - SAIX and IS. The SAIX backbone is linked internationally via the SAT-3 cables, while IS gets its international bandwidth via satelite (thus having higher latency). Telkom controls SAIX, or rather, SAIX IS Telkom, whereas IS is a different company alltogether. Most ISPs buy their bandwith from SAIX and many complain that Telkom is ripping them off for international bandwidth. If all of the above is correct, then I would like to pose a question:
Why then, is IS international bandwidth priced the same as Telkom international bandwidth? Or rather, since there is competition for international bandwidth, why aren't we seeing a price drop? Wouldn't it be in the interest of IS to lower their bandwidth prices and attract most ISPs that way?
Correct me if I am wrong, but as I understand, there are 2 backbones in SA - SAIX and IS. The SAIX backbone is linked internationally via the SAT-3 cables, while IS gets its international bandwidth via satelite (thus having higher latency). Telkom controls SAIX, or rather, SAIX IS Telkom, whereas IS is a different company alltogether. Most ISPs buy their bandwith from SAIX and many complain that Telkom is ripping them off for international bandwidth. If all of the above is correct, then I would like to pose a question:
Why then, is IS international bandwidth priced the same as Telkom international bandwidth? Or rather, since there is competition for international bandwidth, why aren't we seeing a price drop? Wouldn't it be in the interest of IS to lower their bandwidth prices and attract most ISPs that way?