ADSL prices too low?

Telkom’s IPConnect costs and national transit prices have not seen the same reductions in price.
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Well there's your problem Cybersmart, stop blaming MWEB and start blaming Telkom :mad: lodge complaints with the competition commission and i***a and Roy, even petition the sangomas to contact Ivy and have her deliver a message to Telkom from the ancestors, do whatever you have to but don't blame your direct competitors for actually competing with you.
 
Blah blah blah. If the demand places a strain on the network, then upgrade your effin network.
 
Lemme get this straight...

We've gone from blaming the high cost of international bandwidth for our high ADSL prices (compared to the rest of the world)... to now blaming the high cost of LOCAL bandwidth for our high ADSL prices.
And then complaining about the competition building their own network to avoid the high cost of local bandwidth... saying that that will hurt local ISPs.

Is this guy for real?

Or am I reading it wrong?

P.S. Remember we all said a year before SEACOM landed how the extra cable will change the local ADSL scene in SA? And then... the local ISP's were like: "SEACOM hasn't changed anything because the price of bandwidth is still too high"
Now that there has been some PROPER change in the local ADSL market, there are still some ISP's sticking to their OLD BUSINESS MODEL and whining that they can't make as much money anymore.
I call: "TOUGH ****!"
You could always RE-SELL your competitor's packages if it makes you feel better.
 
Think Laurie has a point on the R 30 per Gig, however after experiencing local ISP's service levels at R 69 per Gig - I hold the opinion that no matter how inflated the price, the service levels does not increase, only the profits.

Until LLU takes place or being an ISP becomes totally economically unviable, I don't think this issue will be resolved.

One must also keep in mind that most of these ISP's based their business models on the back of Telkom's pricing structures and being efficient and creative is something they never had to do before - painful process, but you either sink or swim.

And please, stop blaming your customers for using too much bandwidth - that is what you are supposed to be selling.

As for being creative:

What I would prefer: An online bandwidth ordering service from an ISP where I can select; amongst other - time of shaping, rate of shaping, protocols shaped, back-haul ISP, access speed at hours, amount of bandwidth, contention ratio, etc. with an immediate cost reflection and credit card purchase option, with no telephonic support, only sms notifications and email support.

I.E. keep it simple (https), cost efficient and put the customer in control of his purchased bandwidth.
 
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Quality will always outshine quantity. If you have a quality product people don't mind paying a bit more for it. However we're getting tired of the blame-game ISP's are playing.

Adapt or die <-- Business models of the past won't work now, if you don't adapt your approach to a "standard" Telkom imposed in 2000 when it released their first ADSL lines, you will suffer a painful death. This isn't an industry where there's no innovation for 20 years and you can use the same business model for half a century without worry. You're in an innovative competitive market. If anything you should be trying to learn from how America does business and how they compete against each other. COMPETE, don't just try to convince a few people to join your ISP and hold on to your little market share.

MWEB had the highest prices for ADSL since forever. While all you guys were basking in the amount of users that flocked to you because of pricing, now that MWEB is competing with you you have a problem? Ah huh...
 
someone please shoot laurie failkov, put that durp out of its misery.
Mweb Ftw
 
Lower prices in the ADSL industry being a bad thing is like lower prices in the bread industry being a bad thing. Nobody argues that you should make a profit, but this is a business best done in large volume with low margins to ensure more people have access to the internet. The days of having 2500 clients and living like a king are over, adapt or die!

We want rock bottom bandwidth prices but if you feel like bolting on VAS to increase margins then so be it. Just make them something we want to buy.
 
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Shayd said:
Lower prices in the ADSL industry being a bad thing is like lower prices in the bread industry being a bad thing. Nobody argues that you should make a profit, but this is a business best done in large volume with low margins to ensure more people have access to the internet. The days of having 2500 clients and living like a king are over, adapt or die!

We want rock bottom bandwidth prices but if you feel like bolting on VAS to increase margins then so be it. Just make them something we want to buy.
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Co-Sign.
 
There is a surprise, cybersmart complaining. Blaming your competitors, lol ... are you sure you not Australian, Laurie Fail-kov
 
The main problem was, is and has always been that the competitors are dependent on Telkom to deliver their services in the first place. The same happened overseas in some places, and no, it's NOT an example to go by. Telkoms 3GB shaped was never a quality offering. It was heavily overpriced and, as far as value for the customer is concerned, a bad joke. Now that ISPs have taken steps to shake up the market, bring the prices down and therefore make ADSL more attractive to a wider range of users, it's a bad thing? Gimme a freaking break. I have a feeling that the infrastructure can't keep up with the increasing demand for affordable, fast internet access. Well tough cuticles, better get your arses into gear and sort that problem out, because one thing I can tell you for free: that demand is not going away. If anything, it will grow. Blaming Seacom for the quality of local ADSL is like blaming Toyota if your Citi Golf breaks down after ten years of not servicing it.

Oh, and one more thing, specifically for Mr Fialkov. In a capitalist market, if your business model can't keep up with the realities of the market, you will suffer. If customers aren't willing to buy bandwidth for >R30/GB, they won't buy it, and you will adapt or go under. We are the customers. We have the money. And we decide who we want to give it to.
 
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At the heart of the problem lies Telkom. Always Telkom, its never NOT Telkom.
 
Fialkov pointed out that we have seen far more ADSL outages this year than ever before. "Count the outages on ADSL before uncapped versus after it was introduced," added Fialkov.
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Thats because Seacom didn't exist before last year...
How many outages has SAT3/SAFE had this year? 1... OOOH so many, must be because of uncapped. Too much data broke the cable off the african coast, it was too full of data so it burst :/
 
Now we know who not going to have that Christmas holiday, he planed because he was not able to suck up the usual profits he makes from consumers. I think he wants to be like mtn and vodacom generate a 60% profits return business...
 
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