Broadband is showing a healthier glow than expected, but ‘no-net’ challenge remains
Britain broadband challenge
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Broadband is showing a healthier glow than expected, but ‘no-net’ challenge remains
“We think it’s going to be easier to build networks than to change people’s minds,” says Johnson.
Britain added 445,000 net new broadband lines in the first half of 2009
And people wonder why our broadband pricing/packages cant match that of larger overseas markets. We just dont have the scale ... 17mil odd broadband lines vs. our < 2mil (much of which is just casual mobile access).
Not even in Telkom's wet dream...
And people wonder why our broadband pricing/packages cant match that of larger overseas markets. We just dont have the scale ... 17mil odd broadband lines vs. our < 2mil (much of which is just casual mobile access).
Image for a minute that all broadband pricing was halved and the higher end packages were made truely uncapped/unmetered. Current revenues would halve, infrastructural costs would escalate exponentially as ppl started flexing their unmetered access, and for what upside?
Sure the current subscribers would be happy campers, but how many additional subscribers would that add to the market to compensate for the losses. How many new people in SA would have the desire and could afford this new nicer broadband? Maybe another million if were lucky ... cetrainly not enough to maintain/exceed current profits in the industry as a whole.
And like in any other industry, if there isnt any upside for the investors, they're not going to plough the money into it. And without the money for upgrades, infrastructure isnt going to keep pace with the new price/performance equation.
So in essence our problem is socio-economic, we need a more educated affluent populus to drive up the broadband scale.
Sure, competition is a catalyst for driving down pricing, but even it can only do so much in the absence of a sizable untapped base waiting to be enticed by a certain pricepoint being met.You can't compare...they have REAl competition...