Connectivity pricing cannot but come down

Thank you Antowan. This is what I have been saying all along. People on here just need to be patient. Give Seacom until the end of the year to filter through the market.

I can guarantee you in a few months time there will be cries of excitement, lots of "No Ways", and "Sweet"... when we see some of the new pricing packages coming online.

It's too early to discount what is going to happen. The best time to tell will be when something actually happens.
 
But what about ADSL line rental? Will that ever come down?
 
Gary,

Seriously, what drugs are you on as I would also like to be as optimistic as you are. Thing is when I look at my experience in the telecoms market I just don't see what you see.
 
ponder said:
Gary,

Seriously, what drugs are you on as I would also like to be as optimistic as you are. Thing is when I look at my experience in the telecoms market I just don't see what you see.
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It is not about being optimistic. It has GOT to come down. If it doesn't then there is something fundemantally wrong in the market and it will have to be looked at very seriously. I for one cannot see where any snag will come in this time as there are enough players to avoid serious collusion. Telkom still controls the landline business, but it doesn't control ISP connectivity to overseas anymore. I am confident we will see a drop in pricing. I am not too sure what Telkom's play will be come Tuesday, but if it doesn't drop pricing it will open itself up for some serious hurting when other services do drop their prices...
 
Telkom

in case you did not know, something IS fundamentally wrong with our telecoms market.
actually im hoping they do away with the line rental completely.- they should- after ripping us off all these years- havent they made enough money?
 
Agreed, there's no doubt it will come down. Seacom will be right there at JINX, any of the ISPs would just need to get their act together and link to it and the floodgates would open.

My prediction: a price drop of 50% on the international component initially. We know that it costs around R10/GB for local traffic from most providers, so that part won't change. Axxess charges R59/GB for shaped so I'd say we'll see R35/GB instead. Decent savings.

Mobile providers are charging R200/GB, so the international component of their pricing is far less. For them it would be the same R24/GB reduction in input costs, which I doubt they'd bother passing on to the consumer.
 
km2 said:
Agreed, there's no doubt it will come down. Seacom will be right there at JINX, any of the ISPs would just need to get their act together and link to it and the floodgates would open.

My prediction: a price drop of 50% on the international component initially. We know that it costs around R10/GB for local traffic from most providers, so that part won't change. Axxess charges R59/GB for shaped so I'd say we'll see R35/GB instead. Decent savings.

Mobile providers are charging R200/GB, so the international component of their pricing is far less. For them it would be the same R24/GB reduction in input costs, which I doubt they'd bother passing on to the consumer.
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The mobile operators don't have room to faff around either!, if they don't reduce their costs their artificial success in broadband will backfire. The wireless popularity, almost exclusive to South Africa, is due to the lack of delivery from Telkom. Should Telkom step-up (Doubtful), we may see a decline in the wireless community, and an uptake in DSL or Fiber should that become an option... however, the mobile operators will fight to keep business!
 
ponder said:
Gary,

Seriously, what drugs are you on as I would also like to be as optimistic as you are. Thing is when I look at my experience in the telecoms market I just don't see what you see.
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When last did a new unsersea cable land?

How are any of your previous experiences relevant in this case?
 
Gary, can we host a "we told you so" thread if your are wrong? :)
 
Gaz{M} said:
Gary, can we host a "we told you so" thread if your are wrong? :)
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sure, you have until the end of the year... six months should be enough time.

I think, however, that I will be hosting my own "I told you so" thread in a couple of months ;) ... if not tomorrow.
 
porchrat said:
LOL that would be quite funny, just one massive thread where every post is "I told you so Gary"
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I dunno, why everyone is picking on me... I am by no means the only optimist... just the most vocal one :p

but I think I have a sure bet here.
 
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