I recently did some calculations. Unfortunately at the time I was under the impression that the 4MB accounts would automatically be upgraded to 10MB for the same price, but the figures are still fairly ludicrous for the standard 4MB accounts.
Here’s how I see it... taking telephone line rental into account (total cost for basic adsl access through mweb):
A: 384kbps = R490/m - R/kbps R1.28 , poor value, affordable
B: 512kbps = R740/m - R/kbps value R1.45, terrible value, barely affordable
C: 10mbps = R1040/m - R/kbps value R0.10, excellent value, unaffordable
*R/kbps: Cost divided by speed in kbps
So obviously this 10mbps stuff is better bang for your buck than anything we’ve ever seen in SA, but keeping that in mind the low level packages are now a disgrace. Here’s another way of looking at it. Upgrading...
A->B: Speed increase 33%(128kbps), Price increase 51% (R250),useless upgrade, barely affordable
B->C: Speed increase 2000% (9728kbps), Price increase 40% (R300), great upgrade, unaffordable
So you see according to the prices 128kbps more a month is worth an extra R250 from A to B, but an extra 9728kbps is worth only R300. I just don’t see the logic.
I am also pretty sure that the total usage of 4mbps account holders far exceed that of 384 and 512 kbps account holders. So looking at the way the pricing is structured low end users are definitely subsidizing the high end users - In other words the low end users brings in all the profit, while the high end users get most of the data. Is that right?