<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote"><i>Originally posted by markiemark</i>
<br />Afterall, strategies like this, inevitably lead to wealthy management, big bonuses, but a company that CANNOT sustain any long term growth.
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I don't know about that - with good marketing and strategy, MWeb managed to continue growing for YEARS as by far the slowest ISP, and they're still going strong. They market to the "bottom end" of the market, the LCD, not to technically literate people. Sure Sentech will lose out on a few technically literate customers who know better, but the majority of their customers probably wouldn't even realise most of the time if they're getting bad service. There will be some long-term negative effect on Sentech's growth from this, but thanks to Telkom and government's snails-pace market deregulation, most South Africans are so desperate for proper telecomms that Sentech will continue to grow anyway. And Sentech's management KNOWS THIS, so it seems very likely their attitude was something like "Well, where else are the customers gonna go? We can make more money allowing the bandwidth to suck, most will buy our product anyway, and the few (mostly technically literate) customers we lose, we'll make up for the income with lower bandwidth expenses".
I think I agree with LoneGunman's analysis - I think they most likely made a 'short-term-thinking' business decision to make a quick buck by letting service deteriorate, perhaps blindly hoping that there would be no (or little/controllable) backlash. Or perhaps they are just "testing the tolerance levels" of their customer base, in order to find the optimal point (bandwidth expense vs size of customer base) at which to let available bandwidth settle. It would be naive to think they hadn't thought all this through very carefully already.