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.
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For every R1m revenue, xxx loses approximately R100,000.
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The loss is even more if we take into account:
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Overheads and employee costs.
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Subsidies on installation and activation costs.
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International bandwidth costs
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At a high level, for every R1m revenue on Openserve fibre, we incur costs of approximately:
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R550,000 on line rentals.
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R550,000 on IP Connect.
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Why do we sell Openserve fibre below cost?
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To remain competitive in the market against Telkom Retail and other ISPs.
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To ensure clients have a decent fibre experience (we cannot manage IP Connect unreasonably).
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In expectation of IP Connect decreases which should be inevitable BUT have been too little too late
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