Why are the prices for fibre so much more on Metrofibre infrastructure than Openserve infrastructure. Telkom, on an Openserve infrastructure, offers 25mbps unlimited for R399 whereas the equivalent from a Metrofibre ISP would be in the region of R800-00. Don’t all suppliers of get their broadband from Openserve. Why then is there such a disparity in prices. We have no say into who provides the infrastructure in our area. We are now stuck with Metrofibre and there ridiculous prices while neighboring suburbs with OpenServe infrastructure benefit from much lower prices. Surely fibre networks are a public service similar to telephone lines. How then can we have different rates for different areas depending on the infrastructure supplier?
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Fibre overcharging
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PsyWulf
Honorary Master
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No,each FNO is it's own provider,ISPs can choose to offer connectivity on those FNO networks however
There's rumours Openserve is going below cost to poach clients from other providers
deweyzeph
Honorary Master
10 years ago you would have paid hundreds of thousands of rands a month for a 25Mbps bonded leased line.
Not just Metrofibre, Vuma is the same with ridiculous high prices - 20mbps average R900 where other providers like Frogfoot offer the same 20mbps for about R500. That is why I will stick with JustDSL 20mbps uncapped through Openserve copper until Vuma that is the only FNO in my area lower prices.
pinball wizard
Honorary Master
pinball wizard
Honorary Master
Free market? Heard of it?
You okes bitching about this are like someone complaining that a VW costs more than a HAVAL.
Bitching at Vuma cause they are they only FNO in your area is not Vuma's fault. Bitch and moan at the other FNO's if you want to be serviced by them.
supersunbird
Honorary Master
No, its not a public service (which is a good thing, so that there is competition, we do not want Telkom and ADSL and 3GB for R1000pm story all over again, do we?). Metrofibre took the time and money to put a network up in your area. Would you rather not have had them put up a fibre network in at all? Do you want to force some other provider in at gunpoint to spend their time and money there?
I know is sucks a bit, but at least you have something, and it's not copper that likely to be stolen.
It’s hardly the case of comparing a VW with a Havel. It’s is rather a case of comparing a VW with a VW where one supplier charges double for the same service as offered by another supplier. The free market suggests that you have a choice in the matter but here, a supplier, metrofibre for example, has a monopoly in your area and you have no choice but to go with Metrofibre if you want fibre. Fibre should be open to all at comparable prices.
pinball wizard
Honorary Master
Go ahead and raise billions in finance and start your own company.
pinball wizard
Honorary Master
Wrong.
Metrofibre and Openserve are not the same company. Their networks are not the same, you obviously don't understand the basic concepts here.
supersunbird
Honorary Master
Oh yes it is, say that there are no Haval dealers anywhere in the Northern Cape, only VW dealers. You are staying in Upington and there is a small VW dealer there.
Are you going to blame VW for that? Are you going to ask Haval to come to the Northern Cape? Are you going to propose all dealers should have all car brands and at comparable prices?
The concept here that there are two companies offering identical products but one charges double what the other charges and if you want that product then you are forced to pay the higher price while someone in a neighboring area can get the product at a much lower price. This may seem fair to you but it doesn’t to me.
pinball wizard
Honorary Master
I thrilled that you know the inner workings of these corporations and how their products operate and their go to market strategies.
Just because the end result to you seems the same, does not negate the different inputs that result in what you get.
Anyway. I'm done with basic education for the day.
Good luck with raising all those billions and floating your fibre company. Be sure to post your progress here so I can stay far away from the end result.
Well I guess a logical argument was not part of your basic education and in an a argument, sarcasm is the last refuge of a loser. Are you by any chance in an OpenServe area?
deweyzeph
Honorary Master
It's really funny to read posts from people complaining about how "expensive" fibre is. Memories are short. It wasn't that long ago that industry experts were predicting that we would never see FTTH in South Africa in a million years. You should be grateful that fibre is even an option, nevermind how much it costs. Most of us in the tech industry would have paid ANY price for a fibre connection. Now people are complaining it's too expensive. I remember in the late nineties I was spending almost R2500 a month on dial-up call charges on a crappy 56kbps modem. That's about R8000 in today's money. Now I've got a 200Mbps fibre connection at home that I'm paying R1117.00 a month for. That's about R350 a month in 1999's money. So I'm paying 7 times less for a product that is 3500 times faster. So please, let's get a bit of perspective here. As far as I'm concerned for what you're getting it's cheap as chips.
You missing my point. What I’m complaining about is the huge difference in pricing between Metrofibre and OpenServe and that one had no choice in Metrofibre being the infrastructure provider in my area and now one is forced to pay exorbitant prices compared to users in OpenServe areas. One allows for differences in price between suppliers but being forced to pay double for the same serve seems to me to be fundamentally unfair.
deweyzeph
Honorary Master
I'm sure Metrofibre's prices would also be as cheap as Openserve if they had a government-enforced decades-long monopoly where all their infrastructure was essentially paid for by the taxpayer. But they don't. So that's the price you have to pay if you want fibre.
My guess would be economies of scale and telecoms backing makes a difference. Since Openserve/Telkom need to convert copper anyway i reckon they pushing to convert at a loss as they aware that the size of areas converted will be net cost saving vs coper infrastructure and servicing there of.
This is a position that can't be compareed to a new entrant who, while they have no legacy costs to deal with, have only capital outlay cost which need to be recouped.
i.e. it all comes down to how its funded, time horizon on return and current fiscal costs if they have a solution in the field. I'd question the financial planning if they didnt envision it getting cheaper as time marched onward.. but then investors will demand roi.. which with a smaller customer base is hard to get around.
This is a position that can't be compareed to a new entrant who, while they have no legacy costs to deal with, have only capital outlay cost which need to be recouped.
i.e. it all comes down to how its funded, time horizon on return and current fiscal costs if they have a solution in the field. I'd question the financial planning if they didnt envision it getting cheaper as time marched onward.. but then investors will demand roi.. which with a smaller customer base is hard to get around.
LiengLiengZA
Expert Member
Let me give my 2c:
Started with Telkom 10mb line:R800 p/m
Then went WISP to get 20mb line seeing as 10mb was the highest offering from Telkom: R1200 p/m.
Cancelled it and got 150gb+150gb: R800 p/m
Then got fibre....wanted to go 20/2 at R730 and then wanted to go 20/20 at R780 but in the end went with 50/5 for R890.
In the longhaul it is not such a steep price considering what I started out with and what I have today...it is 2.5 times faster at just a fraction more.
Started with Telkom 10mb line:R800 p/m
Then went WISP to get 20mb line seeing as 10mb was the highest offering from Telkom: R1200 p/m.
Cancelled it and got 150gb+150gb: R800 p/m
Then got fibre....wanted to go 20/2 at R730 and then wanted to go 20/20 at R780 but in the end went with 50/5 for R890.
In the longhaul it is not such a steep price considering what I started out with and what I have today...it is 2.5 times faster at just a fraction more.