Broadband for lower than R200?

Larger caps rather than lower cost

With the realistic R200 mark as a basis of looking at current service offerings one should expect additional bandwidth for the same price (or similar pricing) once additional (cheaper) internet capacity is made available via SEACOM and other new cable initiatives.

Operators and ISPs are continually surprised at the appetite for additional gigs - look at Neotel suffering with their uncapped products. People at using WAY more than what is/was expected.
 
Why?

"but many industry experts have cautioned that it will not immediately result in cheap broadband offerings"

Why wont we feel the effect immediately? Can someone please explain this to me..
 
Also, please explain if the cost of bandwidth wasn't the prohibitive factor, why were we sold the lie of local vs international? We've seen the expectations drop over time since Seacom was first announced.

Methinks it's an industry seeing the demise of their monopolistic cashcow and backtracking on a business model that was geared to milk the consumer instead of any real bandwidth cost limitations.
 
Well if each member of the CT Wug donated R100 per month, the Wug would grow exponentially. And it would only become cheaper. So I don't see how they get to a conclusion of R200 ~ R220. If they happen to own their own fibre infrastructure, the costs should be covered by now, if not in the immediate future.
 
EddG said:
"but many industry experts have cautioned that it will not immediately result in cheap broadband offerings"

Why wont we feel the effect immediately? Can someone please explain this to me..
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I'd like a fact based explanation for this as well please.
 
What this article doesn't state is what you'll be getting for R200... You can theoretically already get broadband for less than that with a 500MB cap on 3G. Throwing around numbers is fairly pointless unless you stipulate exactly what you get.
 
evilstebunny said:
Also, please explain if the cost of bandwidth wasn't the prohibitive factor, why were we sold the lie of local vs international? We've seen the expectations drop over time since Seacom was first announced.

Methinks it's an industry seeing the demise of their monopolistic cashcow and backtracking on a business model that was geared to milk the consumer instead of any real bandwidth cost limitations.
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+1
 
R200 for a 4+ meg line and uncapped... I dont expect them to ask less...
 
Here is an idea. How about you get rid of the base R200.00 you charge before the user has even downloaded a kb, charge more per gig and encourage your users to use higher volumes? Of course you aren't going to make money with a profit margin of R10.00 per gig on 3gig but make a profit of R20.00 on 10gig and suddenly you are rolling in the dough.
 
mysticBoer said:
I'd like a fact based explanation for this as well please.
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Its quite simple really: Just because Seacom is built does not mean that every provider will be using them from day one. Many long term agreements are in place at the old prices. Until those end the providers will be mixing expensive bandwidth with cheaper bandwidth and the overall cost will not be as good as pure Seacom capacity. Additionally - it takes time for providers to connect to Seacom - we not going to see every network in the country connecting to Seacom on the first day that it is lit up.

nebbyneb said:
What this article doesn't state is what you'll be getting for R200... You can theoretically already get broadband for less than that with a 500MB cap on 3G. Throwing around numbers is fairly pointless unless you stipulate exactly what you get.
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I think it was quite clear there... as input costs come down the bang-for-your-buck will get better. But there are certain costs that are unchanging whether you use 200MB per month or 200GB per month. Thus it is not economically viable to provide services for less than R200pm.
 
!!!

It upsets me every time we discuss lower broadband tariffs. This government has been giving it to us APO PISO (greek for from behind) for a long time now. It makes me sick to the stomach how we the Consumers are being gang raped by telkom, vodacom, mtn and every other Telecommunication company in this country.

Someone must have the BALLS to drop their Tarrif's NOW!! to catch as much Clients as what they can before everybody lowers their prices...

Doesnt it make a little sence?

and i dont want even get started on Shaped and unshaped or capped and uncapped (ONLY IN SOUTH AFRICA)
 
I want to pay R200 for the access fee. Then charge me R10 a gig or something like that for bandwidth after that with it getting cheaper the more you buy. So R10 a gig for the first 5 then drop it to R9 for the next 5 etc until you get to R5 per gig. Charge R1000 or whatever for large caps in the multiple hundred gigabyte range. It will stop the home users who pull 1 terabyte of data down a month and clog the network for us all while still making it cheaper for businesses etc. Then the higher end users are catered for cause the bandwidth gets cheaper and the lower end guys are also happy...
 
Bla bla bla bla bla..

IBIWISI

We getting screwed. They know it, we know it, and there's nothing we can do about it. I still maintain that prices won't drop at all as they will use the excuse that the tariffs will remain the same or increase to cover the costs of connecting to SEACOM. The only slight chance of prices coming down is when eventually the LLU becomes unbundled properly and the guavamint sells it's shares in Telkomdemonopolies. But the latter will never happen and the former will take 10+ years. So yeah, we are screwed for a long time. Anyone have more lube for me? My 10kg tub has finished from being raped for so long now.
 
kuga said:
Bla bla bla bla bla..

IBIWISI

We getting screwed. They know it, we know it, and there's nothing we can do about it. I still maintain that prices won't drop at all as they will use the excuse that the tariffs will remain the same or increase to cover the costs of connecting to SEACOM. The only slight chance of prices coming down is when eventually the LLU becomes unbundled properly and the guavamint sells it's shares in Telkomdemonopolies. But the latter will never happen and the former will take 10+ years. So yeah, we are screwed for a long time. Anyone have more lube for me? My 10kg tub has finished from being raped for so long now.
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10kg.. hahaha we need about 100kg lube for how we have been nailed
 
Of course we can have BB below R200/m.
Simply execute all the greedy bastids that price-fix the "variety of input base costs" components (that includes AKCjr himself) and voila ...

Jokes aside:

the cost of building an access network
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We have paid for the copper many times over so ADSL BB is certainly a hairsbreadth away. And BB is possible over the existing Eskom grid too, so this is bull. It's the newer & wireless networks where costs apply. Why can't telecoms companies re-coup their investment over a 10-15 year period like other companies, why do that have to so so in 6-months then still keep the inflated prices anyway.

costs for spectrum and other license fees
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WTF are we paying taxes for - it's a freeking government task ... that is supposed to be paid for out of existing tax-income revenue streams. Why invent new taxes called by other names and further burden the masses if only to fatten the already fat cats?

backhaul bandwidth which includes international bandwidth
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Dunno if it is still so, but it used to be true that it was cheaper to go JHB > London > JHB than it was to simply go JHB > JHB. (Going International is cheaper than going local.)

general network investments and operations
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extend your investment re-coup time plan to be in line with other companies, streamline your operation costs cy cutting top-brass moerse salaries that flirt in the high millions per annum. Come down to earth where the rest of us live.

marketing costs and in some cases customer equipment costs.
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That's as lame as saying "my finger hurts so I'm increasing prices."
 
apogeeza said:
WTF are we paying taxes for - it's a freeking government task ... that is supposed to be paid for out of existing tax-income revenue streams.
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Ok - so instead of spectrum licence fees... lets just up income tax :sick:
 
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