Might EASSy start another bandwidth price war?

inferno said:
I dont see why ISP's dont build their own local loop...

Probably waiting for the cheap and easy option. Until then, we should be bashing them and not telkom as they are the ones who refuse to spend their own money on their own network.
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Cost. Buying up right-of-ways, dealing with copper thieves, laying copper to every house you service, training and hiring technicians, etc. In the end it will cost more than Telkom can offer it for.

http://en.wikipedia.org/wiki/Natural_monopoly
 
inferno said:
I dont see why ISP's dont build their own local loop...

Probably waiting for the cheap and easy option. Until then, we should be bashing them and not telkom as they are the ones who refuse to spend their own money on their own network.
Click to expand...

Quite simply put: It's effectively made illegal for them to do so even if they wanted to.
Basically for someone to build and put in place a public network like the "local Loop" they would need by law a telecoms licence like the kind that Telkom, Neotel and the other network operators enjoy.
This is of course bloody expensive and you have to have meet all sorts of nonsensical conditions like colouring all the electrons used or something similar. i.e. a huge barrier to entry to ensure that no serious competition enters the market which may have a honest work/earnings/profit sort of business model.
As opposed to a monopoly/extortion/back-pocket kind enjoyed by Telkom and their major shareholder the Department of Telecommunications.
 
EffKay said:
Quite simply put: It's effectively made illegal for them to do so even if they wanted to.
Basically for someone to build and put in place a public network like the "local Loop" they would need by law a telecoms licence like the kind that Telkom, Neotel and the other network operators enjoy.
This is of course bloody expensive and you have to have meet all sorts of nonsensical conditions like colouring all the electrons used or something similar. i.e. a huge barrier to entry to ensure that no serious competition enters the market which may have a honest work/earnings/profit sort of business model.
As opposed to a monopoly/extortion/back-pocket kind enjoyed by Telkom and their major shareholder the Department of Telecommunications.
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iirc only Neotel and Telkom may currently provide Local Loop network as per their licence agreements. Neotel chose the wireless route... pending LLU.
 
Price ware will be welcomed ... anything which gives the consumer something back is good by me.
 
MickeyD said:
iirc only Neotel and Telkom may currently provide Local Loop network as per their licence agreements.
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The local telcos, mobile operators & major ISPs all have the same licences (IECS+IECNS), therefore the same entitlements. Local loop deployment is basically a financial equation (investment vs. return) related to our market size.
 
MickeyD said:
iirc only Neotel and Telkom may currently provide Local Loop network as per their licence agreements. Neotel chose the wireless route... pending LLU.
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Nope... any of the ~500 network operators who received new licenses after the Altech case are allowed to build their own local loop. The issue is that the cost is prohibitive and in areas where there is already Telkom lines they would never get enough customers to recover the investment.
 
Roman4604 said:
The local telcos, mobile operators & major ISPs all have the same licences (IECS+IECNS), therefore the same entitlements. Local loop deployment is basically a financial equation (investment vs. return) related to our market size.
Click to expand...

ambo said:
Nope... any of the ~500 network operators who received new licenses after the Altech case are allowed to build their own local loop. The issue is that the cost is prohibitive and in areas where there is already Telkom lines they would never get enough customers to recover the investment.
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Thanks! This is what makes MyBB great, you learn stuff all the time. :)
 
jes said:
EASSy’s international bandwidth prices causing a stir in South African market
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That sounds suspiciously like present tense. Nice.

“Some are looking for small amounts of capacity (as low as a 2Mbps E1) with a short-term commitment (as little as 1 month for one-off requirements).
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So one can buy prepaid uncapped on a fibre cable. Sorta like the axxess PnP vouchers. ;)
 
All these developments are chipping away at Telkom's empire. At some stage they will have to respond; hopefully they surprise us all with pro-active price reductions or better deals at current pricing. But history tells us that this will NOT happen.

Bring on MOAR competition!
 
Venomous said:
All these developments are chipping away at Telkom's empire. At some stage they will have to respond; hopefully they surprise us all with pro-active price reductions or better deals at current pricing. But history tells us that this will NOT happen.

Bring on MOAR competition!
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rather have MOAR quality with better pricing. no use having a connection at R19 or less p/g and it is total ****.
 
Fibre

ambo said:
Nope... any of the ~500 network operators who received new licenses after the Altech case are allowed to build their own local loop.
The issue is that the cost is prohibitive and in areas where there is already Telkom lines they would never get enough customers to recover the investment.
Click to expand...

Telkom do not have fibre to the desktop -- or even to the kerb ( except for some DSLAM installations )

I see a space here for someone -- this is the way of the future -- get on the wave -- NOW.

IF you do Telkom // Neotel will never catch up.
 
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