Hey Bekdik
Not at all. I'm a major advocate of unthrottled ADSL, where your exchange distance and line clarity are the only things limiting you. There are a huge number of advantages to it and massive benefits to the market. The 384k comment was purely to visualise the profit margin involved for most companies as this is the most common ADSL account owned by a home user... and why other companeis are loathe to resell them. I want the market and the government comms dept to stop talking and do soemthing about what they've been promising since 1999.
http://mybroadband.co.za/news/telecoms/12154-Nyanda-wants-lower-retail-prices.html
Nyanda further promised that broadband will be universally available by 2019. “We have finalized the Broadband policy whose vision is to ensure that South Africans have universal access and services to broadband by 2019,” said Nyanda.
“The benefits accruing from the policy will include the provision of multimedia and e-Government throughout the country,” said Nyanda.
Even at the increased ADSL installation of 11,000 accounts per month (Telkom March 2010) this will see a 2.6% market penetration per year. More importantly 15 years to get just 50% of the country a phone & internet line (11-12% already have). So what the heck are they plannign to do to get EVERYONE online for 2019??
Ask them to waste more time at work? (Boring facts) 600,000 ADSL accounts but 7.5m people online and 2.4m Facebook users in SA... surely a LOT of people are not really doing much work.
Randomguy:
We have been considering, and I was previously modelling, the idea of our own ADSL provision. However the costs are pretty significant and the scale of investment needed to see medium to long-term return in a market as volatile as this is a very high risk. To give you an idea, to be able to service 15,000 4MB ADSL customers you would need in the region of R250m start up and maintenance costs. including a bunch of things, such as marketing etc etc...
Sounds excessive until you know that a SEACOM STM-1 (155mbps) is R15m (incl setup) then the IPC and local would have to be rented and you'd then have to build in a failover system for the international. Which essentially puts the monthly rental on top at R1.8m+ and this will only provision 1,900 4Mbps ADSL accounts running on a 50:1 contention... however you could only really and safetly run 50:1 with 10-15,000 customers and even then it's quite hard.
We had considered the business model to take for investment of around R1bn but to be honest i don't think it's our market when we already have one that should work well.
So essentially we are at the mercy of the Tier 1's and their systems. Again, Things can only get better adn I fully believe they will. However, the business sense unfortunately says play the waiting game... although it does allow you to do whatever it takes to make sure the wait isn't very long!
