ADSL pricing

[Lightscribe]

Nuro, not wanting too start a flame war (he says naivly...) but....

According to this article the total cost of ownership of a 384 DSL is:

- Over a year: R6266

To better smooth the once-of costs, rather work over two years.

- Over two years: R10610
- Over 2 years (taking the current 29/MB 'special'): R9410 (and we know this is a limited offer, below cost price of R29/GB)

A 1GB package from iBurst at 1Mb/s is R5256 over two years.

This is less than half (just over 50%) of the Telkom pricing and even 44% less than the best deal you can get currently on ADSL (R29/GB)

So at a 1GB contract level, iBurst is about half the price of a much slower ADSL offer.

I do realise that the one problem (with most of the wireless solutions) is the OOB and top-up pricing (watch this space ), but for a "normal contract" user, iBurst offers a very serious value proposition measured against ADSL, let alone the other mobile wireless networks.

I see this as positive also... Thanks Jannie.

 

[jannievanzyl]

IMO when you only have 1GB speed doesn't really matter. Though I imagine the value proposition still exists at higher GB packages.

How did you arrive at those numbers? Would actually be interesting to see a breakdown comparison on setup costs etc. What about out of contract or does iBurst not have month-to-month options?

I used rpm's numbers and just multiplied the monthly cost over 24 months. This gave a number of R10610 TCO over 24 months. Then I did the same but substituted Afrihost's R29/GB to get to the R9410 per two year TCO.

iBurst over 24 months for 1GB (including the modem) is simply R219 x 24 = R5256.

There is an iBurst month-to-month option at R199 per month for 1GB. Again this is substantially cheaper than R362 per month (using rpm's numbers) or R312 per month (using Afrihost's numbers).

In all cases iBurst is between 30% and 50% less expensive than an equivalent (but slower) DSL option. Even when the DSL is sold below cost.

 

[Lightscribe]

Can someone sign on for the iBurst month-to-month option at R199 per month for 1GB, then top up with Afrihost's R29/GB?

 

[The_Unbeliever]

Can someone sign on for the iBurst month-to-month option at R199 per month for 1GB, then top up with Afrihost's R29/GB?

Unfortunately not.

Now that would be a real killer option.

Which resuscitates the idea of whether it is possible or not to have this sort of feature where you can use afrihost/axxess/webafrica/etc adsl logins on iburst as well. (But I have a feeling that it won't be possible).

 

[Lightscribe]

Yes, it would be a fantastic way to bypass telkom's landlines and save tons of money.

 

[Sting]

Imagine how fast that 10Gb from WA would have disappeared if I could have used it with my Telkom 3G service!!!

 

[jannievanzyl]

Yes, it would be a fantastic way to bypass telkom's landlines and save tons of money.

Unfortunately the only way to 'bypass' the landline bit is not to use it in the first place, i.e. by getting a wireless device like an iBurst modem.

But you got me thinking......

 

[Rouxenator]

Unfortunately the only way to 'bypass' the landline bit is not to use it in the first place, i.e. by getting a wireless device like an iBurst modem.

+1

Going with Telkom is part of the problem, not the solution.

 

[Lightscribe]

Unfortunately the only way to 'bypass' the landline bit is not to use it in the first place, i.e. by getting a wireless device like an iBurst modem.

But you got me thinking......

Cool, that would shift the revolution into high gear. This is exactly what the country needs.

I would dump telkom in an instant, if iBurst offered such versatility to use other ISPs for top ups, or top ups from iBurst at very low costs.

 

[Tun@]

In far away lands when new cables get connected
http://www.internode.on.net/products/broadband/plan_changes/faq/

Local

Was 30gb for R330 now 50gb for R330 on that plan mentioned,the same week the cables connected.
http://www.internode.on.net/residential/broadband/adsl/easy_broadband/plans/

Out of interest i was using that company spending $50/R330 back in 2003 for 5GB, it then went to 8GB and now 2009 50GB for the same price of 6 years ago

 

[porchrat]

I see this as negative.

It isn't negativity if it is true, at that point it is just realism.

I find the idea of prioritising LLU very appealing and would love to see it happen. It is just that I have seen these sorts of things said before about a myriad of other topics. Fool me once and all that. In other words I reserve judgment on whether they mean it or not until I see the results. Not exactly negative, just not positive either.

 

[Nuro]

Nuro, not wanting too start a flame war (he says naivly...) but....

According to this article the total cost of ownership of a 384 DSL is:

- Over a year: R6266

To better smooth the once-of costs, rather work over two years.

- Over two years: R10610
- Over 2 years (taking the current 29/MB 'special'): R9410 (and we know this is a limited offer, below cost price of R29/GB)

A 1GB package from iBurst at 1Mb/s is R5256 over two years.

This is less than half (just over 50%) of the Telkom pricing and even 44% less than the best deal you can get currently on ADSL (R29/GB)

So at a 1GB contract level, iBurst is about half the price of a much slower ADSL offer.

I do realise that the one problem (with most of the wireless solutions) is the OOB and top-up pricing (watch this space ), but for a "normal contract" user, iBurst offers a very serious value proposition measured against ADSL, let alone the other mobile wireless networks.

Point taken

 

[klasvaakie]

This article hasn't been thought through...

If you want to attribute "Cost of international bandwidth" to costs of ADSL as a whole... why are you including startup costs?

You'd incur those without ever needing international bandwidth!

what we want to see is HOW THE PRICE OF INTERNATIONAL BANDWIDTH EFFECTS WHAT ISPs ARE GOING TO CHARGE FOR BANDWIDTH.

That is the only relevance that bandwidth has and the only area in which the end user has A CHOICE!

You could have the same startup costs as mentioned in the article... but instead of a pathetic 1GB package... you CHOOSE the uncapped, unshaped option and then your startup costs pale in comparison to what you pay in monthly bandwidth charges!

Am I the only one who sees that the article is not relevant?

Preach it brother. It is my exact same thought. We want cheaper bandwith packages...we already have grown accustomed to telcom's big member rogerring us from behind. So now that their stranglehold on bandwith (being the major shareholder in the SAT3 cable) is broken...we would seriously like to see some products that in some way lessen our monthly adsl costs. I basically go through about 4 gig international bandwith a month (if affordable uncapped was available it would be more)...along with my line that costs me round R1000 p/m. If isp prices come down by 50%...I save R250 a month...that's another carton of smokes...thats a month's worth of beer. That's at least one decent night out where I buy drinks for all my friends. So ja, this article has irelevant to me.

 

[nicok]

This calculation has a number of flaws

ADSL Pricing Conundrum -

This calculation has some serious flaws that any first year student can rip to shreds.

If one uses 2 or 5 or 10 gig the entire calculation ratio changes. By using 1 gig, you manipulate the statistic to defend the entrenched position. Don't be fooled by this.

If the STAFF WRITER were to redo this calculation for month THREE and not month one, and have the user taking 5 gig not one, the stats will prove the opposite to what it does now.