Backhaul bandwidth costs

So why does 1 GB of "local" saix bandwidth cost R10 per gig, and so called "international" unshaped saix bandwidth cost R99 per gig (using Axxess as an example)?
 
Another option is for Neotel to carry SEACOM bandwidth from their Midrand data centre to JINX, where they already have a presence. Neotel was asked for feedback on their pricing for such a 155 Mbps link, but despite numerous attempts to get feedback from the company they did not provide any information.
http://mybroadband.co.za/news/Telecoms/9233.html
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Then what is the price this guy was able to get?

I've just had a discussion with Neotel about the possibility of setting up an ISP and providing *cough* cheap uncapped international bandwidth, given the landing of the SEACOM line.

The first half-an-hour was pretty useless; the key account manager showed me their current WiMax and other offerings - for example the 1.5 Mbit connection with 1-Gig CAP and thereafter 8c per meg. I told him that I was not interested in that, and that the 'per meg' rate was not as cheap as he touted; in fact we are paying the same with IS accounts.

Then he showed me that they currently offer uncapped international for R999 per month - bandwidth taken from SAT3 and SEACOM. I told him that this was also comparable and I didn't regard that as cheap international bandwidth by any means.

He showed me the SEACOM pricing - which costs approximately R1.5 million per month for a 155 mbit pipe and fixed line. This is where I have trouble equating this hideous cost with 'cheap' international bandwidth passed on to you, the screaming consumer. If the ISP has a 155 mbit pipe, and 155 consumers connect at 1 mbit - this will cost the ISP R10,000 per customer. Obviously, this is not viable. Then if the ISP has to compete with Neotel's offering, it has to have 1550 customers - costing the ISP R1000 per customer. This takes away the guarantee of full bandwidth but still offers 'uncapped'. Obviously, if the number of customers goes up, then the available bandwidth on that fixed 155 mbit line becomes lower.

http://mybroadband.co.za/vb/showthread.php?t=185839
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30 gig accounts with people sharing - ohh wait, Telkom killed it with the caps and ICASA sang along
 
... a distance of around 24 km – will cost R 120 000 per month, which excludes the equipment and operating costs needed to light the fibre and maintain the network.
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So it makes good business sense to rather get ripped off for eternity, and still maintain another person line instead of saving the money and laying your own fibre. If not saving, use them until you got the money to lay your own line.

I would like to know what it would cost now to lay a 24km fibre line ( including all construction and materials ) and then compare that to DFA's monthly fee, then we can see if they are telling the truth or just bullpoo'ing us.

Anyone wanna second a follow up artcile to DFA's cost for this 24km link
 
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With these tiny caps we had there was no incentive to upgrade these intra-country links - it wasn't profitable. Now that the international highway is open we find the local roads are still in the horse-and-cart age because the providers all fell asleep at the switch. Actually, they had no reason to upgrade, after all - why waste the money - SA losers (ahem customers) can do with 3GB per month - and they can continue to do so for the next few decades.

Cheaper internet.... in SA a country renowned for monopolies and consumer unfriendly behaviour of corporates? FORGET IT.

All SEACOM will mean is BIGGER profit margins to ISPs.
 
....and thats why nothing changed with the arrival of the Seacon cable, ya sure you country crippling baastidz
 
Personaly I dont see bandwidth prices dropping drastic anytime soon, why do you think there is so many players entering the fibre market in SA, its because its profitable. You don't invest a few hundred mil in a cable just to drive down prices, thats not the reason these companies are doing it.
 
I have come to the hard realisation that we will continue to chase after the proverbial carrot dangling at the end of a string for decades to come, unless we remove ourselves from this situation.

This is the reason for my signature.
 
If I were company X (DFA) and I have been raking in, say, 3000% profits for the last couple of years, WHY would I suddenly be bothered to reduce my profit margin for the "poor little consumer", who makes me rich in the first place?
 
pofadder said:
If I were company X (DFA) and I have been raking in, say, 3000% profits for the last couple of years, WHY would I suddenly be bothered to reduce my profit margin for the "poor little consumer", who makes me rich in the first place?
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Exactly. These articles just highlight the BS we've been fed about lack of int'l connectivity in the past as reason for the high prices/low caps we have. The industry is lying constantly and consumers and pundits just take this hogwash in.
 
DFA has spent R 1.5 B, equating to a cost of R 1 875/m (as voipnow said), which is a bit high. I also remember an estimate of R 300 - 600/m, which is still high, but more reasonable.

Acidrain is correct, R 45 000 000 for a 24 km link is excessive, but remember that DFA has several pairs of fibre per duct and several ducts per line; so they can sell that line several times over. And a more reasonable cost estimate is R 12 000 000 (R 500/m). At R 1 440 000 per pair per year, they're making 12% by selling only 1 pair.

Remember that R 120 000 pm, even at a "cheap" 40 Gbps (shouldn't be more than R 400 000 for equipment) = R 3 / Mbps / month. Or less than 1 c per GB (at 60% utilisation)

What about the other costs? How about an article on JINX peering. What are their port charges? What do the Tier 1 ISPs charge to peer at JINX? These articles are showing us who is responsible for the excessive bandwidth prices in this country. So far, I find Telkom GUILTY, for charging R 5 000 for a 2 Mbps IP Connect link, which is unavoidable for ADSL customers, but, I find DFA NOT GUILTY, there pricing seems reasonable.

Air everyone's dirty laundry RPM, it encourages people to find cheaper ways of doing things.

Edit: slightly off topic: DFA has some brilliant maps, showing their network here (warning : 4.6 MB PDF)

Also, notice the SANRAL network on DFA's maps. WOW! What a network. Hundreds of KMs of fibre, laid at the road users expense. If the profit from that network doesn't pay for ALL our roadworks, I'll be suprised. (Actually, I won't be, this is Africa after all, I'll be suprised if it doesn't get spent on Mercs for senior SANRAL management.:mad:)
 
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DFA’s current metro price for a fibre pair is R 5 per meter per month. A DFA connection from Neotel’s Midrand data centre to JINX in Rosebank – a distance of around 24 km – will cost R 120 000 per month, which excludes the equipment and operating costs needed to light the fibre and maintain the network.
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Surely that is R5000 per meter?
 
Im so tired of all these crap articles...why do people still read it?!! When I saw the topic, I did not even bother. I will only read when one day it says "Broadband costs slashed by 50%". SA is so lame, everyone has a different story! I cant wait for Lightscribe to open up his NPO ISP. MyBB used to have exciting articles, but this crap shouldnt even have been posted....quite frankly I dont care what the real cost of backhaul is.
 
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