ADSL price cuts may be coming

[Kevin Lancaster]

ADSL price cuts expected

Telkom recently announced big ADSL wholesale price cuts, and Internet service providers are expected to pass some of the savings on to consumers.

 

[Rocket-Boy]

Fialkov also warned that Telkom’s decision to give massive price cuts to small clients, and very small cuts to large clients, will disrupt the market

How is that a bad thing?
The more competition the better it is for the consumer.

 

[Lawnchairman]

thank goodness

 

[mister]

Openweb CEO Keoma Wright said they will be using the majority of the reduction to increase the quality of their network.

In what way? Hiring competent staff? Not sharing accounts?

 

[Kayoss]

Openweb CEO Dr Keoma Wright said they will be using the majority of the reduction to increase the quality of their network.
“We will be ordering a large amount of bandwidth into the network on our Durban, Johannesburg, and Cape Town IPC nodes,” he said. “Once live, clients [-]will[/-] might experience a [-]much improved quality of[/-] service.”

Fixed

 

[Chris.Geerdts]

It's rather early to get details from the ISPs, these are just general comments. The real changes usually come after the first mover announces 'dramatic new pricing'.

I see Laurie's point about the two steaks, but it doesn't apply to data consumption - users are typically able to consume considerably more data if the pricing is right as examples the world round show

 

[Beri]

I see a "slashing" headline in the future. and in the end it is 2%

 

[Skerminkel]

He explained that it is like paying 15% more in a restaurant to get two steaks instead of one. Great if you are very hungry, but if you cannot eat two steaks it may be a waste.

His clear and plain explanation indicates that at least he understands the story. Not so sure about the rest!

 

[Skerminkel]

Once live, clients will experience a much improved quality of service.

So there is room for "much improvement"? Not very good PR!

 

[whatwhat]

I'd rather get a better service than a cheaper service.

Poor people that want the "best bang for buck" are the worst thing that could happen to this industry.

 

[Chevron]

I'd rather get a better service than a cheaper service.

Poor people that want the "best bang for buck" are the worst thing that could happen to this industry.

+1

PLEASE can we have less shaping and more lenient FUP.

 

[Wall]

I'd rather get a better service than a cheaper service.

Poor people that want the "best bang for buck" are the worst thing that could happen to this industry.

+1

though I doubt this will happen.

 

[Bighit]

I'd rather get a better service than a cheaper service.

Poor people that want the "best bang for buck" are the worst thing that could happen to this industry.

Yes! Learnt this the hard way.

 

[ToxicBunny]

In what way? Hiring competent staff? Not sharing accounts?

Nope, its more bandwidth so that they can share more accounts.

 

[rrh]

My cynical mind is wondering if this is some kind of defensive action against FTTH i.e. by making ADSL cheaper ?

 

[Sinbad]

My cynical mind is wondering if this is some kind of defensive action against FTTH i.e. by making ADSL cheaper ?

Of course it is.

 

[whatwhat]

My cynical mind is wondering if this is some kind of defensive action against FTTH i.e. by making ADSL cheaper ?

Telkom FTTH goes through IPConnect, so it helps both the same.

 

[ponder]

Did the adsl line rental price not go up a month or two ago?

 

[Swa]

It's rather early to get details from the ISPs, these are just general comments. The real changes usually come after the first mover announces 'dramatic new pricing'.

I see Laurie's point about the two steaks, but it doesn't apply to data consumption - users are typically able to consume considerably more data if the pricing is right as examples the world round show

How not? You might have the appetite for two steaks but you have to pay 15% more for them. Not much room for price cuts if ISPs have to pay more unless they give better value packages that cost more or get more customers on board. Can't see the last one as realistic seeing Telkom's adsl subscribers are continually dropping.

Seems Telkom is just screwing everyone around. They don't want to make it cheaper but get more money instead without doing anything to increase the customer base like LLU or naked adsl. I've given up on them and will be waiting for my fibre install instead of for pigs to fly.

 

[whatwhat]

How not? You might have the appetite for two steaks but you have to pay 15% more for them. Not much room for price cuts if ISPs have to pay more unless they give better value packages that cost more or get more customers on board. Can't see the last one as realistic seeing Telkom's adsl subscribers are continually dropping.

Seems Telkom is just screwing everyone around. They don't want to make it cheaper but get more money instead without doing anything to increase the customer base like LLU or naked adsl. I've given up on them and will be waiting for my fibre install instead of for pigs to fly.

Paying 15% more for double the capacity means you can take on double the subscribers at your current contention ratio. So more money for the ISP.