Axxess and SEACOM

R

robkowa

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Hi

does anyone of you know whether Axxess are going to be one of the ISPs who will profit immediately from the SEACOM cable?
(If not, I'll change to whichever provider does, can't wait to get out of this internet hell)...

Thanks

Robert
 
Most ISP resell SAIX/IS bandwidth. They're all in the same boat. Neotel is an option only once they get a fixed line option.
 
i'm pretty sure that all the isps will resell SAIX/IS/(NEOTEL/SEACOM) bandwidth

otherwise, if you're correct, axxess will have pretty much no effect on the isps.

remember - seacom is open to all providers
 
also, along those lines. I think telkom are going to drop their SAT/SAFE prices to be competetive. Remember, telkom arent stupid..

just because they dont tell everyone their intentions, doesnt mean they arent planning to do it.

They wont price themselves out of the market.

Previously they had the only supply and we were all demanding. Now that there is another supply and more coming, they will also lower prices to be competetive
 
Initially Seacom will have to charge a bit more than they will in the long run because they now have to recoup all the spending and try to turn a profit as soon as possible. Telkom(SAT) on the other hand have been turning a HUGE profit for a very long time.... Now if Telkom was cleaver they should drop their price significantly below what Seacom can afford to offer in the initial stages. Keep all business away from Seacom for as long as possible, lock in providers using contracts hopefully this will canibilise Seacom who wont be able to turn a profit for a few years and hopefully Seacom will give up and liquidate after a few years. Telkom regains their monopoly and pushes prices back up to our current extreme levels. :D :eek:
 
Vegeta said:
...drop their price significantly...Keep all business away from Seacom...regains their monopoly
Click to expand...

You see now that would make business sense, something Telkom cannot grasp. Ala economies of scale.
 
O and once Seacom starts going down and investors want out because they can't turn a profit, Telkom should buy the controlling stake in Seacom. The consumer assumes the position and grabs their ankles!
Why dont they hire me as the new CEO at telkom??? This is my job application.
 
Vegeta said:
O and once Seacom starts going down and investors want out because they can't turn a profit, Telkom should buy the controlling stake in Seacom. The consumer assumes the position and grabs their ankles!
Click to expand...

I, for one, hope that scenario does not happen.

Because if it happen, telkom will just pump the price up again... :sick:
 
Vegeta said:
this will canibilise Seacom who wont be able to turn a profit for a few years and hopefully Seacom will give up and liquidate after a few years. Telkom regains their monopoly and pushes prices back up to our current extreme levels.
Click to expand...
What makes you think that Telkom would be the only one who would be able to buy out Seacom IF they liquidated?? :confused: We now have over 300 I-ECNS licencees and they are all on a level playing field with Telkom.

At the moment the majority of ADSL comes from SAIX and IS's IPconnects but there are a number of other guys who have smaller IPconnects and I suspect that they will crawl out of the woodwork once they have Seacom transit and they can compete favourably on price :D
 
Nerfherder said:
SEACOM are already supplying to most of Africa... how the hell would Telkom be able to buy them out ??? LOL
Click to expand...
Didnt know that :o
But I'm talking about the cable venture to SA, isn't that a joint ownership between investors including neotel?
 
Vegeta said:
Didnt know that :o
But I'm talking about the cable venture to SA, isn't that a joint ownership between investors including neotel?
Click to expand...

Well that same cable venture is running along the east coast of Africa, so it's not just Telkom SA who they're in competition with.

In any case I suggest someone sends Axxess that draft email which Garyvdh sent out to a few other ISP's, although Axxess might already have got one. See this thread: http://mybroadband.co.za/vb/showthread.php?p=2834657#post2834657
 
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Vegeta dude. All of your commentary concerning Seacom here are way off. SA is not the make or break of the cable.

Telkom will be doing all the running to keep up with Seacom. (on bandwidth coming into the country that is)
 
Ive asked Axxess a few times if they have any new packages or if they see the stupid throttle going or faster speeds and they have said no, nothing yet, so its going to be a while, they should ban and delete any topics put up by ISPs talking about possible this and probable that, until a fair deal is available we dont wanna know!
 
Vegeta said:
Initially Seacom will have to charge a bit more than they will in the long run because they now have to recoup all the spending and try to turn a profit as soon as possible. Telkom(SAT) on the other hand have been turning a HUGE profit for a very long time.... Now if Telkom was cleaver they should drop their price significantly below what Seacom can afford to offer in the initial stages. Keep all business away from Seacom for as long as possible, lock in providers using contracts hopefully this will canibilise Seacom who wont be able to turn a profit for a few years and hopefully Seacom will give up and liquidate after a few years. Telkom regains their monopoly and pushes prices back up to our current extreme levels. :D :eek:
Click to expand...

It seems you only passed economics 1 at Varsity....
In Economics post you will learn it doesnt quite work that way :o
 
zeely said:
also, along those lines. I think telkom are going to drop their SAT/SAFE prices to be competetive. Remember, telkom arent stupid..
Click to expand...

Don't you just love contracts? I am pretty sure most of sat-3 system is sold off in a few yrs worth of contracts so they are kinda tied in. I think prices will drop as these contracts end and hopefully one of them has the balls to drop prices instead of rake in enormous profits. (oh wait they can but haven't yet, its easier just to blame telkom and smile when going to the bank)
 
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