Cool Ideas Fibre ISP – Feedback Thread 3

cavedog

Honorary Master
Joined
Oct 19, 2007
Messages
18,266
Realistically everyone on the Openserve network offering true uncapped/no FUP services at the rates similar to ours are doing so at a loss with IPC fees as they are. It's a limited market so to get market share you sell the products at a loss for a while.

Everyone is doing this in hedging that IPC rates are going to drop or fall away long term, realistically the next IPC drop will be at Openserves next financial year end which is expected to be around 10% or so.

Even with the 10% factor as things are it would be running at a loss, and with the way Openserve/ The Telkom group are cutting jobs to save money I dont see IPC falling away for a long time.

Here is an example inquiry from one of the larger ISPs:

Using xxx as an example, the monthly loss on Openserve fibre is approximately 10% of revenue.

For every R1m revenue, xxx loses approximately R100,000.

The loss is even more if we take into account:

Overheads and employee costs.

Subsidies on installation and activation costs.

International bandwidth costs

At a high level, for every R1m revenue on Openserve fibre, we incur costs of approximately:

R550,000 on line rentals.

R550,000 on IP Connect.

Why do we sell Openserve fibre below cost?

To remain competitive in the market against Telkom Retail and other ISPs.

To ensure clients have a decent fibre experience (we cannot manage IP Connect unreasonably).

In expectation of IP Connect decreases which should be inevitable BUT have been too little too late

That is assuming equal capacity on ipc vs line speeds sold.

There is some margins there as not everyone max their lines speeds 24/7 but yeah Openserve fibre on the low speed packages are a loss even if a user never contacts support or never uses international the major cost will always be there. IPC
 

PBCool

Cool Ideas
Joined
Jan 11, 2016
Messages
9,156
That is assuming equal capacity on ipc vs line speeds sold.

There is some margins there as not everyone max their lines speeds 24/7 but yeah Openserve fibre on the low speed packages are a loss even if a user never contacts support or never uses international the major cost will always be there. IPC
Not really, as a ballpark 100Mbps of IPC is around the 5 digit mark per month. It's more around the peak average which is around 4-5Mbps per user and with the popularity of the entry level service there is no margin at R499, even R599 is basically not profitable at the moment.
 

r00igev@@r

Executive Member
Joined
Dec 14, 2009
Messages
5,404
Not really, as a ballpark 100Mbps of IPC is around the 5 digit mark per month. It's more around the peak average which is around 4-5Mbps per user and with the popularity of the entry level service there is no margin at R499, even R599 is basically not profitable at the moment.
You could deliver a product of 10/5 at R399 with a simple term modification of adjusting streaming to 2 Mb/s. Throttled and uncapped economics as you point out does not work on low end products.
I used to watch DSTV on my 1 Mb/s iBurst modem. You not going to have the family with multiple streaming devices using the product but many single people living in apartments will use it.
There are 3 attributes for broadband: Uncapped, Unthrottled and Cheap. You can select 2 for a product.
 

thehuman

Expert Member
Joined
Nov 2, 2004
Messages
3,399
Hopefully you don’t have the same issue I have more than a week after installation with no news on when it will be resolved and both FNO and ISP blaming each other :(
Holding thumbs your line get sorted soon
Wonder what frogfoot reasoning is if pppoe connection drop , my layman's deduction point me to a interception between your router and CI pppoe server .
How often do pppoe drop ?

@PBCool you guys must presure frogfoot to allow customers to do diagnostics and speed test bypassing isp and router
Any news on Reaper problems
 

Reaper84

Expert Member
Joined
Jun 24, 2008
Messages
3,247
Drops maybe 5/6 times a day. Just dropped now again.

2020-02-08 11:12:41 PPP Information ppp0 sent [PADI Host-Uniq(0x0000061d)]
19 2020-02-08 11:12:41 PPP Error ppp0
20 2020-02-08 11:12:41 PPP Information ppp0 rcvd [LCP TermAck id=0x3]
21 2020-02-08 11:12:41 PPP Error ppp0 User request
22 2020-02-08 11:12:41 PPP Information ppp0 sent [LCP TermReq id=0x3 "User request"]
23 2020-02-08 11:12:41 PPP Warning ppp0 LCP down
24 2020-02-08 11:12:41 PPP Error ppp0 LCP down
 

Joka69

Expert Member
Joined
May 17, 2013
Messages
2,883
@PBCool Any idea if there's an outage in the westrand area?

My network just died, not sure what the cause of it was, and I need to log in for work in a couple hours?
 

zolly

Expert Member
Joined
Sep 1, 2005
Messages
3,268
Octotel Southern Suburbs, am getting long timeouts. Was just down for about 2 mins and just came back up. Hopefully it stays that way, I have work to do.
 
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