Data prices go haywire

Sentech offers the MyWireless flexi1000plus package, which is 1024 megabytes of data (one gigabyte plus an added 24 megabytes)

That's wrong methinks. 1gb = 1024mb. They should give you 1048mb if it's 1gb + 24mb or I got taught wrong :confused:
 
One gigabyte of data is estimated as the equivalent of 18 hours worth of MP3s and the ability to browse about 30 000 Internet pages.

With one gigabyte, you can store about 700 video clips or 40 minutes of flash video, which is about eight hours of normal video. One gigabyte will allow you to send an estimated 150 000 emails if they do not contain attachments, which obviously use up more data.
I know it's slightly off-topic, but I simply cannot STAND it when people try to tell you what you can do with xMB/GB of data. What is the bitrate of these MP3's? What type of A/V compression is used on the video clips and how large are they? What webpage was used to arrive at that figure and what content was hosted on it? And only 40 minutes of flash? Does this journalist seriously think that everybody reading the Business Times is that ignorant or does he have a 2nd job at Telkom's marketing department?

This isn't even counting the numerical stuff-ups such as:
Sentech offers the MyWireless flexi1000plus package, which is 1024 megabytes of data (one gigabyte plus an added 24 megabytes)
Seems like the journalist is the one in need of an education when it comes to matters of a technical nature.
 
1gig 2gig 3gig its a joke when they start talking 30gig or uncapped we will all sit up and say sure now something is working in SA (must be telkom again).
 
That those rates are ideal is laughable! R300+ for 1gig! I've got my 3gig for R125 and then yes I've got Telscum line rental for R245.00, but there's no rental with Vodacom or MTN right? Or am I missing something?

Why should 1 gig cost R300.00 or more? The infrastructure for wireless is something I can't fathom and thats where the added cost may be - but it in no way entices me to think of looking at those options. Those data tarrifs are as ridiculous as the other problems faced here with broadband!

Let them come down some more!
 
Still say that Virgin mobile is still the people's choice - R 50,00 for 100 Meg Pay as you go, on a mobile phone were you can use Opera Mini as well takes a lot of beating, despite all the price cuts.

One has to remember that the majority of people are not able to get a fixed line service, because it either costs too much or it is not available to them (thanks to TelCon's roll out of fixed line Universal access for all)
 
yeah, i also think its kinda hectic. We all know telkom or IS charge around R55-R65 per gig for international data per gig. (local is suppose to be free). But in the GPRS/EDGE/3G/HSDPA Arena 500mb is R189, 1gig is R289 and 2gig is R389 ??

R289 for 1gig. *one gig costing R65* <-- that is a profit of R220+-

the R65-R70 per gig i can understand (cause thats what it costs them from Telkom or IS) But u cannot tell me it costs them another R220+- to offer people this service. They can maybe say R50 service cost. or R80 max per month. and then charge u the R70 a gig, or even add a few bucks for profit on the R70.. making it R100 per gig. so then R250 should get u 2gigs including the service cost.
 
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yeah, i also think its kinda hectic. We all know telkom or IS charge around R55-R65 per gig for international data per gig. (local is suppose to be free). But in the GPRS/EDGE/3G/HSDPA Arena 500mb is R189, 1gig is R289 and 2gig is R389 ??

R289 for 1gig. *one gig costing R65* <-- that is a profit of R220+-

the R65-R70 per gig i can understand (cause thats what it costs them from Telkom or IS) But u cannot tell me it costs them another R220+- to offer people this service. They can maybe say R50 service cost. or R80 max per month. and then charge u the R70 a gig, or even add a few bucks for profit on the R70.. making it R100 per gig. so then R250 should get u 2gigs including the service cost.
SAIX and IS are Tier-1 providers, they don't get their bandwidth from anyone else. The mobile providers have to get it from either Telkom or IS (not a wise choice because wireless latency is high enough, and then to go via satellite will make the service almost unusable). Thing is we don't know what the interconnect rates are between the wireless providers and Telkom, and this is not even taking into account the cost of the diginet links. The actual data rates are only part of the price.
 
:confused: and here I was thinking that the South African broadband market was primarily driven by price - silly me...hold on a second, if it is not about the price then why has MTN seen a surge in new data customers signing up following MTN's price reduction promotional offer? - coincidence? - I think not!
LOL, gotta love spin-doctoring - was it not MTN that first announced its price reduction promotional offer? - to which the rest of the wireless broadband operators responded with their own price reductions - including Sentech with MyWireless...
:confused: what was LooLooPoo on about there? - was she referring to Telkodemonopolies' recent [limited] launch of WiMax, and if so, is LooLooPoo aware that her employer has already launched WiMax - albeit on an initial limited scale...???
Good to know, perhaps VM could let us know when they find something interesting, and perhaps which competitor broadband network it is using for its exploration...:rolleyes:

I'm still surprised that VM didn't realise - prior to VM's launch - that CellC had no real intention of providing much more than EDGE coverage for VM customers to use.

Forgot to point out that the article does not even mention Telkodemonopolies' ADSL once, which is rather telling considering that the headline "Data prices go haywire" is not wireless broadband specific - obvious I know, but another nail in Telkodemonopolies' ADSL coffin, but who knows
<dreaming>
maybe Mbeki will order /tmp/ceo.September to abolish the monthly ADSL Connectivity|Access ripoff fee...​
</dreaming>
 
One gigabyte of data is estimated as the equivalent of 18 hours worth of MP3s and the ability to browse about 30 000 Internet pages.

With one gigabyte, you can store about 700 video clips or 40 minutes of flash video, which is about eight hours of normal video. One gigabyte will allow you to send an estimated 150 000 emails if they do not contain attachments, which obviously use up more data.

I think I'll write a letter to the Sunday Times and ask them why they don't do research before writing articles.


and the ability to browse about 30 000 Internet pages.

I just when to the IGN website and measured the download traffic for opening up their home page. It was 3.89MB!

30,000 pages! What, only text?


With one gigabyte, you can store about 700 video clips

I downloaded 8 video clips from www.gametrailers.com and that amounted to more than a gigabyte. These video clip were only a couple of minutes each.


One gigabyte of data is estimated as the equivalent of 18 hours worth of MP3s

At "CD quality"? Didn't think so!


This article will fool people into thinking that 1GB is adequate and might therefor sign a 24 month contract with a wireless operator. They will only later realize that they need to buy more data, at out of bundle data rates. (They will believe the Sunday Times.)

Articles like these are very misleading for the techno challenged.
 
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yeah, i also think its kinda hectic. We all know telkom or IS charge around R55-R65 per gig for international data per gig. (local is suppose to be free). But in the GPRS/EDGE/3G/HSDPA Arena 500mb is R189, 1gig is R289 and 2gig is R389 ??

R289 for 1gig. *one gig costing R65* <-- that is a profit of R220+-

the R65-R70 per gig i can understand (cause thats what it costs them from Telkom or IS) But u cannot tell me it costs them another R220+- to offer people this service. They can maybe say R50 service cost. or R80 max per month. and then charge u the R70 a gig, or even add a few bucks for profit on the R70.. making it R100 per gig. so then R250 should get u 2gigs including the service cost.

Perhaps we must start with Cellular business 101:

Vodacom will sell the 1Gb for R289. That is R253.51 + VAT of R35.49.

They are then left with a contribution of R 188.51 to do all the following:

1. Install 3G/HSPDA network - Physical infrastructure costs that will be recovered through depreciation over about 8 years.
2. Site rental costs - Payment of rental to the owner of the ground where the antenna is build - up to R4000 per month per site
3. Maintain 3G/HSPDA network - (includes replacement of equipment etc.)
4. Leasing of lines to enable the internet to run - like for ADSL users that must pay a rental and the ADSL portion, the same is true for Cell companies.
5. Electricity costs and backup electricity costs
6. Kickback/commission to shop owner or other service provider that sold the 3G contract

The above is the socalled direct costs. Add to this the indirect costs:

1. Marketing to get more people to use the service
2. Social programmes
3. Head office costs
4. Call centre costs
5. Other costs

This will then result in the profit before tax, and Vodacom will give SARS it share of 29% of this profit.

Now only can we talk about profits. I heard somewhere that the 3G services is still not profitable as the network costs are still being paid. It will be profitable in the future but not yet.

FireTelkom
 
@FT, yep I think you've successfully fired Napalm's costing breakdown out of the water and into the harsh realities of daylight :).

There is a common misconception that wireless broadband has no wires involved - that all the data is transmitted wirelessly, well just bcos one doesn't see the fibre links used for backhaul from a wireless base-station to the core network and beyond for peering and international connectivity via circuits on SAT-3, does not mean that the links are not there and with Telkodemonopolies controlling things, it costs the wireless broadband operators a significant amount of money.

Then there is the investment in radio equipment and base-station sites, which is actually quite considerable - there are hardware vendors that have to be paid - antenna arrays and the controllers & s/w to make them work, do not grow on fake palm trees - they have to be placed there at considerable expense - often increased by the resistance of local residents that want coverage but don't want a base-station anywhere near themselves...

There are also running costs for each base-station: electricity and rental|payout fees etc, and we know that Vodacom has 2000+ HSDPA base-stations, [post=961396]MTN has 1200..1300 HSDPA base-stations[/post], no comment on iBurst & MyWireless.
 
That those rates are ideal is laughable! R300+ for 1gig! I've got my 3gig for R125 and then yes I've got Telscum line rental for R245.00, but there's no rental with Vodacom or MTN right? Or am I missing something?

Why should 1 gig cost R300.00 or more? The infrastructure for wireless is something I can't fathom and thats where the added cost may be - but it in no way entices me to think of looking at those options. Those data tarrifs are as ridiculous as the other problems faced here with broadband!

Let them come down some more!

I agree, and when are we going to get away from this 24 month contract thing? Telkom is/was giving away ADSL modem/router/ap's with no contracts attached!!??:confused:
 
I agree, and when are we going to get away from this 24 month contract thing? Telkom is/was giving away ADSL modem/router/ap's with no contracts attached!!??:confused:

The HSDPA modems like the E220 are much more expensive than the routers Telkom was giving away. Telkom also has the only ADSL network in the country so people can only use the modem with them, the same doesn't apply to the cell operators.
 
Expensive

They're still off the mark and too expensive. Although given they are wireless operators, they really make Telkom look like a dinosaur.
 
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