Moneyweb: What does ADSL really cost?

[kaspaas]

What does ADSL really cost?
Ana Monteiro
Posted: Thu, 04 Aug 2005 19:32 | © Moneyweb Holdings Limited, 1997-2005

ICASA wants to control Telkom’s pricing of high-speed Internet (or broadband) services and Telkom has threatened to close its ADSL service if it does. Moneyweb has tried to find out if the operator’s claim that it would not be able to recoup costs was justified.

More at http://www.moneyweb.co.za/news/tech_stocks/469745.htm

 

[R4tt3xx]

Finally the right questions are being asked. What this country needs is the competition.

 

[lucifir]

this is probably one of the best articles yet .... Lets hope that ICASA can get things done sooner rather than l8er

 

[titanium]

"ISPs buy three gigabytes worth of service for R157."

So that's the wholesale price that Telkom charges ISPs for the 3Gb cap!

 

[Darth Garth]

A very excellent article by MoneyWeb - that is what is now needed instead of bluster. Telkom now needs to PROVE their case otherwise.

 

[kaspaas]

It would be interesting to see how Telkom explain why they are so inefficient that they can deliver ADSL at the equivalent of UKpound 10 pm.

 

[Roman4604]

Finally the right questions are being asked. What this country needs is the competition.

Totally agree, strong competition is the true solution to SA's broadband dilemma. ICASA should be focusing more on regulating the market environment than controlling the monopoly or future duopoly.

Other broadband markets are far more advanced (pricing & performance) than ours not because of strong control by the regulator, but rather due to strong competition bought about by fair, easy access to common infrastructure.

If SA is to match these overseas broadband markets, ICASA should be focusing their energy on legislating the following access for all VANs/ISPs ...

- Local loop access - VANs/ISPs should be allowed to co-locate DSLAMs at exchanges & lease the copper-to-customer at fair wholesale rates

- Self provisioning - VANs/ISPs should be allowed to install/procure whatever communication technologies/facilities avaliable on the market to haul their traffic between exchanges and their national network.

- SAT3 access - VANs/ISPs should be allowed to procure capacity on SAT3 at a fair (continually audited) wholesale price.

While many of these topics are covered in ICASA's report & the forthcomming Convergence Act, they do not seem to be at the 'tip of the spear' currently.

 

[Spectre]

We all know who runs telkom, needless to say why its so screwed. Reminds me of taxi's. They want their own set of traffic rules,they feel they dont need to obey anyones rules and also they charge and pocket the money,Tax free i might add! Oh and when cops start pulling them over, what do they do? Strike!!! cause you taking them on. What does telkom do when you take them on? threatens to pull plug on ADSL. Only in south africa. We're like the only country with this ****? or are we!?

 

[Roman4604]

"ISPs buy three gigabytes worth of service for R157."

So that's the wholesale price that Telkom charges ISPs for the 3Gb cap!

No for any cap up to 30Gb.

 

[mikkelz_za]

White says there are plans to sell bandwidth on a per-gigabyte basis to ISPs by the end of the year, as this will enable ISPs to build own packages, and create a cheaper product for customer who do not use 3GB of bandwidth each month.

What about cheaper for those customers who do use more than 3GB of bandwidth each month?

 

[FireFLi]

Infuriating is what it is! I agree with Roman the infrastructure needs to be opened up to the free market.

 

[Roman4604]

infrastructure needs to be opened up to the free market.

The clever thing about having regulated free & fair access to infrastrucutre is that you no longer have to try to control Telkom. Let them have their pay per gig, hard caps, monthly access fee ... their products just wont survive in the market.

 

[Celemasiko]

An excellent article which is bringing our problem here in SA to the point...

 

[Debbie]

If Telkom's contentions are true, that they would lose money should Icasa force these new regulations, then Telkom should come clean and prove what they say. Instead, they hide and guard their COA/COM (whatever its called) with secrecy.

We cant forget that Icasa has access to this COA/COM, and so Icasa knows whether or not Telkom would be significantly financially hurt by doing away with the access charge.

Either that, or Telkom lied in their chart of costs to Icasa and are now trying to undo the damage done.

 

[shaven]

Hi All

My first post! I'm very excited about the latest developments.
The way I see it is rather have the sh#t hit the fan, (ie. Telkom - Icasa court battles etc) then have the status quo we have been seeing for years.
At least this way Telkom gets exposed.

My view is that this is the beginning of the end for Telkom's dominance and unfair practices.

"ISPs buy three gigabytes worth of service for R157."

So that's the wholesale price that Telkom charges ISPs for the 3Gb cap!

Lets do the maths here people, somebody correct me if I've left something out.

100 000 Adsl subscribers @ R157 pm
= R15.7 million per month
= R188.4 million per year. (that’s more than a lot of companies make, and that on the ISP subscription alone!)

Now you can’t tell me that Telkom can’t afford to maintain their network with that amount!