ADSL prices too low?

Who had too much dried frog pills?

Come on guys, stop whining and get away from Telkom.

If Afrihost (one of Mweb's competitors) can actually give out cheaper ADSL pricing (and a couple of free 1Gb accounts to boot) without breaking the bank, then surely there must be something wrong with YOUR business model?

Customers now have a choice - and they will exercise it, whether you like it or not.

Welcome to the real world.
 
Profit, profit, profit! That's all they can see. Reducing prices will extend your user-base, leading (in time) to better profits. But no, they are too myopic to see that. They want all the money NOW.
 
So... If you need a reliable connection get a business offering.

If you dont need a reliable connection get a cheap uncaped offering, whats the problem?

I dont mind having an uncapped offering for 1 year at a cheap price een if its down for 3 days every few months.
 
MightyMuffinMan said:
So... If you need a reliable connection get a business offering.
If you dont need a reliable connection get a cheap uncaped offering, whats the problem?
I dont mind having an uncapped offering for 1 year at a cheap price een if its down for 3 days every few months.
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That's my opinion as well.

As was mentioned at the MyBB Conference, you get what you pay for - cheap and nasty - and don't expect it to be a Bugatti Veyron!!
 
Industry expert argues that cheap ADSL services, especially uncapped offerings, make it challenging to make insane Vodacom-level profits
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Fixed.

This is the whole "Unsustainable" argument all over again.
 
who.is.michael said:
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.
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+100
 
Look,they do have a point,new entrants or smaller ISPs would have difficulty challenging pricing like this without making a loss-lead for a while ( if they succeed even at breaking even ) However Laurie and others seem to be looking at total-cost-to-own per Mbps,instead of breaking it down and finding out where the pricing is ballooning - and fixing that
 
"I think the local ADSL industry needs to wake up and realise that you cannot have business services at below R30 per GB."
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Have most of you realised that Laurie was referring to business services, which require redundancy?

Many ISPs have raised concerns that ADSL prices have fallen to a level where it is virtually impossible to compete effectively and still ensure high service levels.
The ISPs owners have raised these concerns in ‘off-the-record’ discussions because of the typical consumer backlash which follows negative comments about cheaper ADSL services.
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At least Laurie has the balls to put his name to comments...

I'm not a Cybersmart employee or customer or in any way affiliated to them. I think it is unreasonable to attack Laurie because he is the only ISP willing to openly state his opinions. Did anyone actually go and read the link to the input prices?
 
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The whole debacle reminds me of the days when we had Apple and IBM PC's. Then Taiwan started to export cheap imitations and everyone threw up their hands in horror - "cheap imitations are unreliable and will keep breaking down!". Apple and IBM took a masssive hit, but eventually the industry realised that customers are not simply going to pay more, and a much more vibrant, customer-friendly industry emerged.

Using that lesson: people who try to resist market forces will be pushed aside, and people who go with the customer flow but learn to offer value and communicate value will succeed.
 
I hear what everyone here has to say.
But oh well... whatever the reason, I'm still on my 20GB capped WebAfrica account. It sucks not having uncapped, but at least when the uncapped users crap their pants when Seacom goes down I'm dowloading at 400 Mbps+
 
MickeyD said:
Have most of you realised that Laurie was referring to business services, which require redunancy?
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Indeed I did,however do tell which part of the business service is hiking up rates the most

At least Laurie has the balls to put his name to comments...

I'm not a Cybersmart employee or customer or in any way affiliated to them. I think it is unreasonable to attack Laurie because he is the only ISP willing to openly state his opinions. Did anyone actually go and read the link to the input prices?
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/nod
 
This article should be marked as a joke. It is complete attempt at "spindoctor-ing" why prices should stay high. Other "small" ISPs are still giving the best prices per gig so how is it all MWeb's fault?
 
entrepr said:
The whole debacle reminds me of the days when we had Apple and IBM PC's. Then Taiwan started to export cheap imitations and everyone threw up their hands in horror - "cheap imitations are unreliable and will keep breaking down!". Apple and IBM took a masssive hit, but eventually the industry realised that customers are not simply going to pay more, and a much more vibrant, customer-friendly industry emerged.

Using that lesson: people who try to resist market forces will be pushed aside, and people who go with the customer flow but learn to offer value and communicate value will succeed.
Click to expand...

I agree 110%. CyberSmart is failing because of their poor business strategy. Adapt and live on or fail and sell your customers to mweb/web africa/afrihost/telkom.
 
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