ADSL Service Rentals - Pricing model flawed

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FlashSA

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There is something that is bothering me. Has anyone actually looked at the 3 line speed options from Telkom?

Fast DSL - now only R152.00 p/m
(based on 384kbps technology)

Faster DSL - now only R326.00 p/m
(based on 512kbps technology)

Fastest DSL - now only R413.00 p/m
(based on 4096kbps technology)

Telkom would have us believe that capacity and bandwidth costs money. Now - how can the jump from 384 to 512 be more than double (R174) the initial monthly cost - but the jump from 512 to 4MEG only be R87?? Surely Telkom's infrastructure costs are a lot more for a user who is now using a 4MEG pipe compared to the 512 pipe he used to use (800% faster)?

Now - why do the 384 user's get penalised so heavily to move up to 512 - only 25% more bandwidth?

I know Telkom can do what they want - but surely? How do they justify it?
 
/me checks the figures including the compulsory line rental:

The 384 line is teklom's push to get people to use the 512 infrastructure, but throttle them down to 384, and at the same time, provide an offering that will lure people into getting the ADSL product so that their penetration figures look like something is being penetrated. This offering uses a single copper line.

- What you have to bear in mind is that the actual minimum cost here is 111.90 + 152 = R263.90.


- The 512 offering uses the single copper line to it's full potential on ADSL1, and it's total cost is 111.90 + 326 = R437.9. That's 1.6 times more expensive than the 384 offering.

- The 1MB / 4MB offering uses 2 copper lines, and costs 111.90 + 413 = R524. That's 1.1 times more expensive.


Damn ... that's horrible ... rape the poor!

384 - 512 = 1.6 times more expensive.
512 - 1MB/4MB = 1.1 times more expensive.

i.e. You're a fool to have 512 and not get 1MB/4MB.

I spoze Teklom want ebberybody on 4MB.

Why : Speculate : Every single ADSL installation has the 2 copper lines installed. I spoze it costs Teklom absolutely nothing to use the 2 copper lines instead of the 1 copper line, and when the user is using 4MB/s, they will use more than 3GB, and therefore Teklom wholesale gets to make more money from the 4MB users, so they are happy to let them do that?
 
Last edited:
Ya - thanks for commenting, stoke... I left the line rental out because it is standardized and mandatory across all 3 offerings.

In agreement about 512 - rather pointless!
 
flashsa said:
Surely Telkom's infrastructure costs are a lot more for a user who is now using a 4MEG pipe compared to the 512 pipe he used to use (800% faster)?
Click to expand...

Nope. My 384K line costs Telscum EXAXTLY the same as your 4Mbps line. Line rental has Nothing to do with bandwidth costs btw - as there is none included in the 'package'.
 
Hi Stoke,

"The 512 offering uses the single copper line to it's full potential on ADSL1"
"The 1MB / 4MB offering uses 2 copper lines"

Im a little confused by that statement - By 2 copper lines are you referring to one pair of wires that every telephone line has had since we had telephones?
 
i dought that is true....

But it can be seen like this..

512 = smart car
4meg = truck..

The one messes up the road a lot worse.
 
512 is definately not "smart" in value :P

Stoke, you have been here a longer time than me, but I dont know where you got the idea that Telkom gives you two lines to have 1/4MB ADSL, they dont, its one standard old telephone line, just like the rest (384/512)...
 
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