Expensive ADSL could be a good thing..

M

MaD

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..because when the SNO enters the market with cheap bandwidth prices, Telkom won't even feature when people talk about choosing the cheapest prices.

So let them charge what they want. In fact, they could make it R300,000 a month - it may as well be R3 million cos hardly anyone can afford it anyway - the more the better. The SNO has bigger aspirations than Telkom, I will give you that in writing, and bandwidth is one area where there will be quite a bit of competition.
 
have u got some inside information?? Cos from what I understand, they not interested in a "price war".
 
I think most people will move over to the SNO just to get away from the Telkom brand.
 
daevor said:
have u got some inside information?? Cos from what I understand, they not interested in a "price war".
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hmmmmmm.. that would be telling :)
They have publicly stated that bandwidth prices will see a sharp decline.. understandably as they have hundreds of millions of rands worth of fibre all over the place that has been lying around for a few years and needs to be paid off.
 
I believe the ADSL and general prices must be as low as possible when the SNO eventually starts. That way the SNO must then offer something even lower to get a people changing from Telkom.

The general population would not consider switching if there is no savings involved. Would you go through all the trouble to get a new SNO telephone line installed if it works out more per month?
 
At first i though you had point MaD, but Franna is right, the more we push to get Telkoms prices lowered, the lower prices will be when the SNO does come. And it's not like we could get the prices too low for the SNO to compete with, prices could halve from the 1 Nov situation and we could still get a much better deal from Telkoms new competition. I am wondering just how much the "price war" between these fixed line services would push down the price of other broadband products, eg. Iburst (which I am on) Shurely there should at least be a significant decrease in the price of international bandwidth, making it possible for WBS and Sentech to offer their services cheaper.
 
Telkom will lower their prices in an instant if the SNO had better prices, anything to protect their precious revenue. oh and telkom do have a massive headroom to lower prices so shouldnt be too hard for them! :mad:
 
The problem is if the prices are high the SNO might just come in to the market just below telkom. They would still be cheaper but not much. Both companies will just make huge profits and we will be no better off.
 
Drone 42 said:
The problem is if the prices are high the SNO might just come in to the market just below telkom. They would still be cheaper but not much. Both companies will just make huge profits and we will be no better off.
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while that may be telkom's way of thinking, it doesn't necessarily mean the SNO would do that. an example of which is eskom, which is also a monopoly, yet provides some of the cheapest electricity in the world to over 90% of the country.

yes initially there won't be a price war, this makes business sense as it would be too easy for telkom to undercut any SNO prices initially. what there will be is a far better product and service offering. most of the infrastructure is already there, and its not the crappy, rotting POTS infrastructure that telkom uses. as i understand it will be IP based. once enough people switch over to them, thats when we'll see prices dropping significantly.

it's important to remember that while an initial price war might be good for consumers in the short-term, we don't want the SNO to go bankrupt and then we all left with telkom again. i think they're playing their cards right by not engaging in an initial price war, instead saving it as a trump card for later on.
 
Highflyer_GP said:
i think they're playing their cards right by not engaging in an initial price war, instead saving it as a trump card for later on.
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Lets just hope they play that card sometime and not become greedy like telkom otherwise we will be in the same situation that we are in with the cell networks were there are not that much of a difference price wise between them.

ICASA will need to do more to ensure that the prices that are set by both companies are fair.
 
Drone 42 said:
Lets just hope they play that card sometime and not become greedy like telkom otherwise we will be in the same situation that we are in with the cell networks were there are not that much of a difference price wise between them.

ICASA will need to do more to ensure that the prices that are set by both companies are fair.
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Bite your tongue MaD ......... that is insane !
 
Drone 42 said:
ICASA will need to do more to ensure that the prices that are set by both companies are fair.
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but that's where the conflict comes in, in my mind. How can ICASA regulate -two- telecoms companies, when they can't even successfully regulate one?

having said that, look at how the DoC has stuffed up with one, single, company. How on -Earth- can Poison Ivy even manage a second (keeping in mind she barely grasps the concept of telecommunications as is) :P
 
Drone 42 said:
Lets just hope they play that card sometime and not become greedy like telkom otherwise we will be in the same situation that we are in with the cell networks were there are not that much of a difference price wise between them.

ICASA will need to do more to ensure that the prices that are set by both companies are fair.
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the problem with the cell networks was that cell c didn't have their own infrastructure, and had to piggy-back on vodacom's. that's where greed came in. SNO on the other hand has a much more modern infrastructure than telkom already in place. also eskom have proved with electricity that they can get the job done. personally i'm pleased that eskom is one of the investors in SNO, which will rely much on theirs and transnets infrastructure

Q-Man said:
having said that, look at how the DoC has stuffed up with one, single, company. How on -Earth- can Poison Ivy even manage a second (keeping in mind she barely grasps the concept of telecommunications as is)
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lets just hope this idiot Ivy stays out of everything altogether, she can manage telkom all she wants but we don't want her sticking her nose into SNO
 
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The bottom line is that I don't think it is a good thing that prices are high because the higher the prices are now the longer it would take to get them down to acceptable rates. By the time we see a price war we might be too far behind the rest of the world to catch up. We need drastic action ASAP! We are getting left behind here.
 
Just one thing.. how is the SNO gonna get its international bandwidth.. last i heard Telkom is still and will remain in charge. :(
 
krycor said:
Just one thing.. how is the SNO gonna get its international bandwidth.. last i heard Telkom is still and will remain in charge. :(
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vsnl has a stake in the sat3 cable as well. not too sure about having equal access to the landing stations as telkom, but would be a case for the competition commission if they started operating here and didn't have access to a cable which belongs to them as well. good question though
 
Franna said:
I believe the ADSL and general prices must be as low as possible when the SNO eventually starts. That way the SNO must then offer something even lower to get a people changing from Telkom.

The general population would not consider switching if there is no savings involved. Would you go through all the trouble to get a new SNO telephone line installed if it works out more per month?
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I would...just to prove a point. I'm sick of their s h i t!
 
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