Cool Ideas 200Mb package too expensive ? Openserve

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Treschen

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Is it me or is the 200Mbps package on openserve too expensive ?

CISP = R2409
Cybersmart (900Gb FUP) = R1515
Afrihost Premium Uncapped = R2097

Hope prices drop next year
 
Sad fact is all our internet packages are “overpriced” considering if you stayed in USA you could get 1Gbps for R980
 
Last edited:
Treschen said:
Is it me or is the 200Mbps package on openserve too expensive ?

CISP = R2409
Cybersmart (900Gb FUP) = R1515
Afrihost Premium Uncapped = R2097

Hope prices drop next year
Click to expand...

Unfortunately as long as Openserve keeps IPC pricing (the cost the ISP pays to acquire your traffic from the Openserve network) high, the costs to actually deliver a 200 Mbps service are so high that a premium uncapped service will always be more pricey.

Regarding the price difference between the US and South Africa. The gap has closed significantly over the past two years, a 1 Gbps Comcast Xfinity uncapped is about $150 (+- R2k) compared to R3-4k+ in SA, so we only have a short way to go.

We will continue to see a downward trend in pricing over the next 24 months, but remember the following factors are at play:
  • South Africa imports a significant amount of transit from Europe, Asia and the US. This is very costly, adds latency and is a cost the US/EU simply don't need to factor in to such a large extent. In addition, it's incredibly difficult and costly to ensure optimal and redundant access to international content at high speeds, increasing the costs associated with 1 Gbps services.
  • In saying that, the past 24 months have seen a huge number of international players begin deploying CDNs in SA, or peering in SA - providing almost free access to a large amount of everyday bandwidth. This includes Facebook, Google, Valve, Netflix, Amazon, Microsoft and Apple amongst many many more. This helps ISPs reduce the cost of acquiring traffic, lowers latency to services and improves the performance for you as an end user.
  • There will always be a base cost for the infrastructure players to recoup their costs -and our late entry to the fibre market which is now largely privatised means that these costs are a real factor in delivering services. While you may not directly be an investor, the RAs, Unit Trusts and other funds that do invest demand increasingly faster ROIs on the rollouts.
  • Finally on services like Openserve, their IPC costs to ISPs will need to reduce before we see a real change in pricing there. It's simply not feasible to deliver a service that isn't heavily contended on the Openserve network. So consumers need to get involved with ISPs in demanding a reduction in costs here.
 
S.Claus said:
Sad fact is all our internet packages are “overpriced” considering if you stayed in USA you could get 1Gbps for R980
Click to expand...
Can say the same about the UK but then you paying £5 per a beer people would loose their **** if that was the price in SA for a castle. So your point is invalid. We a widely spaced out country and don’t have the numbers for internet to be cheap
 
Been saying this all along. They charge more because they can, and there are people who pay it. For Fibre to get cheaper, people would have to vote with their wallets.

In a country where we're mostly starved of decent quality high speed internet options, this won't happen anytime in the near future.
 
Well to add perspective its R1519 per month for 200/200 uncapped and no FUP through Cool Ideas on the Vumatel network. Openserve is generally much more expensive across all their packages on all ISP's.
 
Hype said:
Well to add perspective its R1519 per month for 200/200 uncapped and no FUP through Cool Ideas on the Vumatel network. Openserve is generally much more expensive across all their packages on all ISP's.
Click to expand...
How is your Vumatel uptime and throughput? e.g. how many days in a month can you actually use it?
 
ekske1 said:
How is your Vumatel uptime and throughput? e.g. how many days in a month can you actually use it?
Click to expand...

In the past 5 months we have probably had a sum total of 8 hours without service on the Vumatel link. Throughput for what we use it for has been superb. Locally we get the full 200mbit 99% of the time, with international traffic fairing a bit worse but not to the point of us noticing any degradation on our streaming / gaming / work.
 
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