How ISPs make money from uncapped ADSL

Yuu

Executive Member
Joined
Apr 3, 2006
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5,124
This irks me somewhat.

ADSL service providers informed MyBroadband that they did not receive wholesale price cuts on IPC, national transit or international bandwidth to support the lower uncapped prices. This means that they had to find other ways to save costs.

So they could've passed these savings at any point in the last say 6 months but because Ti has made changes to their product offerings, they decide to make it seem like they did good?

The mind boggles why some of the iSPs even bother to be operating (too harsh?).

I want to see WA bring in some success with the move to IS and offer some good different uncapped products. They have made a name for themselves years ago on the forum (remember live IRC chat with them asking about their network etc) and pickup business for the better.

Afrihost needs to get their nonsense sorted by this month as they have really got a beating (perhaps a long needed one :p).

Ti is really trying their best as evident from the ISP Discussion forum.

I challenge the iSPs who make changes (big ones) prior to public knowledge to put a poll up the next time they want to try and be innovative :) and act based on feedback from said poll.

It stands to reason, we don't always want prices lowered if you aren't going to keep your network functional just because you want the number of subscribers to increase in month #1 to be ontop imo. Give us more bang for the same buck and pretty soon we need not worry about why it is we pay for that line rental :p.
 

whatwhat

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Jun 1, 2009
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So they could've passed these savings at any point in the last say 6 months but because Ti has made changes to their product offerings, they decide to make it seem like they did good?

That's because people were willing to pay the prices. If you can sell something for R699 a month, why would you sell it for R399?

I still believe that we have a problem with the attitude of South African consumers, they are all still brainwashed with the Telkom 3Gb is enough crap from when ADSL first launched. Look at the amount of people that lay into those threads where anyone downloads more than 50Gb on a 10Mb line, and label them as pirates and internet abusers.

Once that attitude changes, and people realise that data should be cheap and you can use as much of it as you need things will get better. That's not to say that everyone will start pulling down 1.8Tb a month now, but that data needs to be treated as a commodity and not something to put on a pedestal.
 

alt21

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Apr 4, 2008
Messages
770
Its always nice to get lower prices but I'm not too sure there is a lot of margin left for ISP's to still make money and provide us with decent products.

Just last week I was doing some speed tests to California and almost none of the Uncapped accounts I tested would go over 1mb on a 6mb line. Switching to a capped account from Web Africa I managed to get 2.6mb on the same line, where local tests I could get full line speed.
 

system32

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Dec 29, 2009
Messages
4,630
ADSL service providers informed MyBroadband that they did not receive wholesale price cuts on IPC, national transit or international bandwidth to support the lower uncapped prices. This means that they had to find other ways to save costs.
Good to see the data component being reduced.

To benefit the consumer & economy Telkom needs to cut the other costs:
  • reduce the IPC costs (which is 3x-4x more expensive than international capacity).
  • reduce/scrap the POTS tax R148.37
  • reduced the ADSL enablement of R425 for a 4Mbps, this is RRR expensive

When you need to pay R573.37pm to Telkom before any data, you realise there is still a lot of to cut.

LLU a lost opportunity:
http://mybroadband.co.za/news/broadband/70082-llu-a-lost-opportunity.html
The diagram explains why ADSL is still so expensive.
 
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Anthro

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Jun 13, 2006
Messages
3,152
It would be lovely if Telkom came to the party by giving the option NOT to use the P.O.S(T) component,
Yes I abbreviated it that way - you deduce what it means to me.
Unfortunately I dont foresee this coming to the table in the very near future, if at all.
That extra R150 odd rand, might make me upgrade my line to a faster speed (and they and the ISP in turn will get more revenue)
 

lexis

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Joined
Nov 14, 2007
Messages
811
Afrihost needs to get their nonsense sorted by this month as they have really got a beating (perhaps a long needed one :p).

I am giving them till the end of the month and then I am going to vote with my feet.

Tired of taking more than 7 hours to download 700mb on a 2mb line. I can't see why I should pay more than at Telkom if the service is also mediocre.
 
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The Trutherizer

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May 20, 2010
Messages
4,899
I still wish we could have an independent wholesale operator that can provide fairly to all ISPs. It's nice to see some movement, but it really does not benefit me since as far as I can tell savings were achieved by cutting corners. And as far as I can tell the bull**** about highlighting the fact that MWeb's offerings are throttled in every article since the price cuts came in is completely unfair since as I said it seems that all the ISPs had to cut corners.

Also... It came as a surprise (but I don't really know why... -_-) that Telkom has screwed with the market like this without putting in place price cuts so that other ISPs can compete fairly. As a long-standing advocate for LLU I really can't see myself supporting them. I don't for a minute believe that there is enough consumer will in this country to effectively oppose this move by Telkom, but I will hang onto my expensive deal for a while longer. At least I know that it is a premium product (a while ago even I thought MWeb was losing it, but it transpired that Telkom had gone behind my back and re-synced me at 2mbps instead of the 4mbps I was paying for - effectively making me pay hundreds of rands more than I needed to for months - I do not know how long...).

So anyway.. Telkom will probably get some popularity from their price cut, but I still oppose them. They are the sole owner of a key piece of the internet infrastructure in SA. If they want to abuse this fact then they can go to hell.
 

The Trutherizer

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May 20, 2010
Messages
4,899
I am giving them till the end of the month and then I am going to vote with my feet.

Tired of taking more than 7 hours to download 700mb on a 2mb line. I can't see why I should pay more than at Telkom if the service is also mediocre.

Check with your ISP if you are still syncing at 2mbps...
 

zamicro

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Joined
Oct 22, 2007
Messages
3,823
This irks me somewhat.



So they could've passed these savings at any point in the last say 6 months but because Ti has made changes to their product offerings, they decide to make it seem like they did good?

The mind boggles why some of the iSPs even bother to be operating (too harsh?).

I want to see WA bring in some success with the move to IS and offer some good different uncapped products. They have made a name for themselves years ago on the forum (remember live IRC chat with them asking about their network etc) and pickup business for the better.

Afrihost needs to get their nonsense sorted by this month as they have really got a beating (perhaps a long needed one :p).

Ti is really trying their best as evident from the ISP Discussion forum.

I challenge the iSPs who make changes (big ones) prior to public knowledge to put a poll up the next time they want to try and be innovative :) and act based on feedback from said poll.

It stands to reason, we don't always want prices lowered if you aren't going to keep your network functional just because you want the number of subscribers to increase in month #1 to be ontop imo. Give us more bang for the same buck and pretty soon we need not worry about why it is we pay for that line rental :p.

Very nice post!
 

ranger

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Joined
May 2, 2007
Messages
2,062
Telkom has screwed with the market like this without putting in place price cuts so that other ISPs can compete fairly.

That is an allegation without substance. You haven't figured out what changed, and yet you harp on about the fact that whatever changed should have been accompanied by other, unrelated changes ...

They are the sole owner of a key piece of the internet infrastructure in SA. If they want to abuse this fact then they can go to hell.

Nothing is being abused. I'll give you some time to try and figure that out.
 
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