Making wireless broadband more affordable

Because the customers continue to pay the insane prices instead of backing off and forcing the prices down.

If South Africans learned how to use their economic buying power, we would be able to control prices to some extent.

But no... the sheep just hand over their money and bend over and take it.
 
Garyvdh said:
Because the customers continue to pay the insane prices instead of backing off and forcing the prices down.

If South Africans learned how to use their economic buying power, we would be able to control prices to some extent.

But no... the sheep just hand over their money and bend over and take it.
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Some people need the benefits of a mobile connection for work. I buy data bundles now and then when I'm going to be away and need internet access. Unfortunately there aren't really any decent alternatives. I don't want to have to hunt down a wifi hotspot in the middle of nowhere.

It's not quite as simple as just saying "don't buy the product". It's priced as it is because there is still demand for it at these insane prices. That doesn't mean people are stupid, it just means that they need the service.
 
Garyvdh said:
But no... the sheep just hand over their money and bend over and take it.
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Do keep in mind the contract terms etc. I fell for it, but i'm walking soon. Within 2 months im out. :)
 
simple answer: unadulterated greed. Milk the peasants for every cent!
 
I can't get ADSL in my area (heck, I can't even seem to get a phone line), and none of the other wireless options is available to me. My only option is 3G. That's why I pay. It's either pay through the nose, or go without Internet.
 
pardus said:
simple answer: unadulterated greed. Milk the peasants for every cent!
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Companies exist to make money. I'm not saying it's the only way to run a business, but shareholders want their dividends.

It's just a pity the barriers to entry (for potential competitors) are so high, but I guess that's the point the article is addressing. LLU on the mobile networks would make things exciting, but it'll never happen.
 
I cant see how any company, after basing their business model on cost to set up towers vs lifetime recoup on data and voice traffic, would be keen to simply open up their "Wireless LL" to any tom dick or harry with a license to offer more compettive pricing .. WRT Telkom I can understand, that network is in part paid for by the Taxpayer .. but a private company being forced to open their infrastructure .. bah humbug .. they would rather force other players to create their own infrastructure (like they did) before they dropped prices.
 
superfly said:
I can't get ADSL in my area (heck, I can't even seem to get a phone line), and none of the other wireless options is available to me. My only option is 3G. That's why I pay. It's either pay through the nose, or go without Internet.
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Same here, no adsl, no ibust, the only thing might be screamer, but that is far too risky, and costs about the same at the end of the day as 3g.

Garyvdh said:
But no... the sheep just hand over their money and bend over and take it.
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So I do not considder myself to be a sheep. just no other choice, or no internet
 
jetlee said:
WRT Telkom I can understand, that network is in part paid for by the Taxpayer .. but a private company being forced to open their infrastructure .. bah humbug .. they would rather force other players to create their own infrastructure (like they did) before they dropped prices.
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Yes a portion of Telkom is owned by the government (not exactly a majority portion mind you), but at the end of the day it is a publicly traded company. Is it not for all intents and purposes a private company? Forcing LLU is going to hurt it's profits and hence going to hurt it's shareholders. Where the loop came from is surely immaterial? How is Telkom's LLU any different to unbundling the wireless loops?
 
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Pioneer Foods, Sasol etc. received fines of millions of rands for pricefixing, but Vodacom & MTN seems to be protected by unknown forces. :D
 
Despite significant price moves in the ADSL market, wireless broadband prices have basically remained unchanged (except for price reduction from iBurst towards the end of 2009).
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That is a factual inaccuracy. iBurst did drop the prices of their per gig rates, but they restructured their packages and in effect actually increased prices by a factor of approximately 1,5.

While the price per gig came down, the same service from iBurst became more expensive. Restructured packages do not amount to dropping your prices. If a 90 g slab of chocolate cost you R10 and the manufacturer brings out a 100 g slab of chocolate for R12, they did not drop their prices...
 
ZombiePriest said:
but they restructured their packages and in effect actually increased prices by a factor of approximately 1,5.
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Have you got a pricing matrix that shows this? I feel like I am paying much less per gig for my iBurst than I was previously and I'm wondering where you get that ratio.
 
ambo said:
Have you got a pricing matrix that shows this? I feel like I am paying much less per gig for my iBurst than I was previously and I'm wondering where you get that ratio.
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Used to be about R249 for 1 Gb and throttled 64 kbps thereafter.

Now, it is R149 for 1 Gb but you are hardcapped. The 64 kpbs is an added subscription of R199 per month.

When you neglect the throttled service, which was part of the package previously, it appears at face value that the prices did come down. This is not the case when one compares the full package before with the full package now, which is what you are required to do if you'd like to compare apples with apples.

This used to cost me ~R249 per month (I used to leave my connection on all the time and I'd get about 8 to 11 Gb of usage (make that 8 Gb so it is R31 per Gb)), whereas it would cost me ~R349 (that is ~R44 per gig, actually). This gives you an increase of 141 % per package.

Hence, iBurst increased the prices of their overall packages even though they dropped per gig prices. This means it is misleading to suggest that prices dropped, because the packages are entirely different. Most ADSL costs about the same for 3 Gb of data as what iBurst costs for 1 Gb if you neglect the throttled service, but do not include line rental. But then you are never throttled. Again, where is the decrease?
 
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if only easyweb would drop their prices, as a wireless internet provider they no to bad but i am sure there must be better out there
 
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