Are you saying they are part of vodacomThe South African Internet Business model appears to be:
1) Purchase overpriced services
2) Resell them at 1000 x overpriced services
3) Claim that offering prices similar to the rest of the world is impossible in South Africa
4) What a bunch of greedy lil twats we have in this ****ry
I agree. Instead of just taking what is being said, rather do some investigating journalism and validate the claims. Give comparisons to other companies products.It would be nice to get some journalism here rather than just posting press releases. Hopefully that is still to come.
Sorry, but this is not uncontended. Please reread the article and you will see that it is 1:3 contended. (Yes I know it is far less than ADSL, but it is still contended.)Guys these are raw fibre prices and are very very good. You have a contended DSL connection of 4Mb or whatever. On this type of connection there is basically no contention.
James is wrong about 1Mbps of fibre being faster than 4Mbps of ADSL. 1Mbps can only give you a max throughput of 1024Kbps per second - regardless of how you get that connection. The main difference is that on fibre you always get 100% of your line speed because there isn't contention on the line as there is with ADSL.
Obviously this is not a good deal for a home user because they make up a massive pool of users that use an ISP's fibre network. The ISP's all use these types of connections. To give you an example to provision a 2Mbps uncontended pipe as an ISP you have the following costs:
R2000 p/Mbps/month for IPC (Fibre route specifically for ADSL)
R1800 p/Mbps/month for SAIX (Fibre route termination to local sites)
R1500 p/Mbps/month for Eassy/Seacom/WACS/SAT3 (International sites)
That means if you as a company wanted direct access to 2Mbps of completely uncontended fibre you would be paying R10,600 per month. Yes you are reading correctly!
But then how does an ISP make money? Well it's all in the numbers. They depend on volumes of customers that pay them enough money to be able to upgrade the network each time the contention ratio gets too bad. some ISP's have several gigabits of bandwidth costing them millions every month.
The contention ratio is basically how many simultaneous users are sharing a megabit (Mbps) at any given time. So you if see a ratio of 20:1 that means the contention is 20 users per megabit. Obviously big ISP's have 1000Mbps or more which means 20,000 users per 1000Mbps or 20:1. If an ISP's contention ratio goes to high they buy more bandwidth or kick of the heavy users.
That's why some ISP's like MWEB are forcing the heavy users off of their network because they are causing an in-balance in the normal demand/supply curve.
Hope that explains it.