Let's take a look from the other side

[onionpeel]

<i><b><font color="blue">Before reading further, you may need a temporary mindest change in order to go along with the story.</font id="blue"></b></i>

Let's just assume that Telkom say that bandwidth becomes cheaper the more it is required by South African users (and they have to pay through the nose for it like we currently do). So the more people who can afford to <u>and do buy</u> Telkom data products, the better it will be for all of us because the price will drop. Economies of scale.
Is the South African population geared mentally for broadband internet? We are a predominantly 'outdoors' population. A lot of my friends are not 'internet minded' to the point where some don't even have Telkom lines, nevermind internet and it's not like they can't afford it either! Those who do have internet hardly use it and are on slow connections.
If I have pictures to share from my holiday (e.g. 3MB), how do I get it to these people who are internetless or have 56kbps connections at best?
Is there hope for these people and will we ever (as a country) get to a stage where prices can drop because the uptake of the internet is good and Telkom can reduce prices?

Note: This is not only a discussion on price, but on the mindset of the people of South Africa.

 

[Perdition]

Well let's put it this way, every country where broadband is affordable to the average person in the street the uptake has been phenomenal. The reason the internet has not taken off here is that even dial up is not a justifiable expense for most people given Telkom's call charges. Economies of scale mean nothing to Telkom, they are a monopoly and while they hold that position they will continue to rip people off regardless of how many people use their products.

 

[mbs]

Focussing on issues of mind-sets, methinx a comparison may perhaps be drawn with that of cellphone handsets - the nature of 'pay-as-you-go' made it affordable (although we all know it's actaully exorbitantly pricey), resulting in mass take-up of the service, even though a new experience for most. It's quite possible that the same thing will happen with broadband services, once seen to be an affordable thing with clear benefits in terms of interactive comms (Skype, anyone?), applications (Banking, anyone?), public services (renew car and driver's license, anyone?), and so the list goes on...

 

[onionpeel]

I think you have to be careful comparing uptake of cellphones with internet.
The capital outlay is much more for internet (i.e. computer and the rest) and the learning curve far greater than a cellphone.
How often have you heard somebody say "All I need from a cellphone is to make and receive calls."
I think you should compare entry or basic cellphones with the smartphone or PDA. Most people wont even coming close to using all the features of these Nokia 6600 or Sony Ericsson P900 etc.

 

[mbs]

Fair comment on a very speculative future scenario, no question. The take-up could also very possibly be boosted with the availability of VOiP handsets, who knows? Anyways, I have no doubt that take-up will eventually occur, despite manipulation of the markets in whatsoever form, for the simple reason that all sectors of society are afflicted with consumerism - keeping up with Joneses, as it were. As the levels of disposable income grow, so does the desire for 'I want', even though in the face of 'I need'. And that's the extent of my waxing philosphical for the day - time to do more productive things...

 

[plug]

It's all about money and Telkom has lots of it. They are also in the perfect position to make more. With all the money to their disposal they can probably keep up the SNO process and telecomunications liberization at every corner. If you had billions wouldn't u try to stonewall all efforts of trying to take the money making potential away from you. Firm action needs to be taken to liberize the market and things need to be done to make bandwidth cheaper. Competition regarding bandwidth would be ideal - that would probably gaurantee cheaper Internet (probably, realy cheap)

 

[keng]

telkom = monopoly = higher prices = fewer clients = minimum service levels = minimum staff = small operational costs = more big bucks = happy government shareholders = more money for lawyers = crippled sno

 

[Spamtheman]

I would dispute that statement, do we have an intrisnically more "outdoor" culture than Australia, if so why the hell can't we beat them at anything? I also don't think our population is significantly less educated than say Egypt or Brasil both of whom have far more impressive broadband roll-outs than we do.

 

[martin]

I attended a diving course this weekend. Most of the people on course struggled completing just two laps (2x10m) underwater. If we're an 'outdoor' nation, we probably spend most of that time sitting around drinking and smoking. []

Sorry, completely off topic.

 

[onionpeel]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote"><i>Originally posted by Spamtheman</i>
<br />I would dispute that statement, do we have an intrisnically more "outdoor" culture than Australia, if so why the hell can't we beat them at anything? I also don't think our population is significantly less educated than say Egypt or Brasil both of whom have far more impressive broadband roll-outs than we do.
<hr height="1" noshade id="quote"></blockquote id="quote"></font id="quote">
It has nothing to do with education. I see it as interest, aptitude or application of/for the technology. I know clever people to whom a cellphone is just a cellphone and a 56kbps modem "does the job"...
As you know, some people have fancy cellphones because they get them bundled on their high end packages, not necessarily because they use even 1/10th of the features. Do you see somebody getting ADSL who only surfs the internet on the weekend?

 

[ic]

ok so i'm a newbie on this forum, but i subscribe to the theory that telkom derive most of their income from analogue lines & it is in telkom's interest to do everything they can to keep a large analogue client base.

If broadband was affordable there would be better uptake, so ask yourself why it isn't affordable.

Status quo is telkom's survival tactic.

ic

 

[martin]

ic, I'm speaking under correction, but I think Telkom's main profit comes from their data services and the fact that they have complete control over all international connectivity via the SAT3 cable.