New AXXESS pricing.

warichard said:
We are currently looking at various options that we can use to reduce our pricing, however, we personally do not feel those prices are sustainable in the near future (and long run) and are merely a response to an artificial drop in price produced by a new provider offering the service. The profitability of those prices is so low as to make it impossible to compete at those levels for any long period of time without making a large loss, and should Telkom impose different pricing (something which is entirely possible, and expected within the next month or two), those prices will in no way be maintainable, and will likely begin to rise back to the levels they have been.

We feel that the prices we currently have are the prices that are likely to be the most "stable" in the short and long-term, with "reasonable" fluctuations in price (unlike the "unreasonable" and artificial drops that we have seen over the past 2 days). We will however be making a favourable announcement shortly on both ours and the MyADSL forums.
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Very interesting... who do you represent?
I suppose time will tell. For the time being I'm just gonna stick to my 5GB account and wait.
 
re ISP's gonna make each other bankrupt - nope, all the ISP's will continue to make a profit - this is just called 'the freemarket system' - and it doesnt happen much in South Africa, (despite all the advertising suggesting it does, from everything to banks, to car dealerships to cellphones to supermarkets. Its usually all lies and bullsheet to hide monopolistic market control.)

So the ISP's will keep on making their money, and trying to undercut each other. Good for them, good for us. This concept just doesnt happen much in SA :)
 
h0ll0w said:
Very interesting... who do you represent?
I suppose time will tell. For the time being I'm just gonna stick to my 5GB account and wait.
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I think warichard is from WebAfrica.
 
tibby.dude said:
The prices from HyperLink is too low to be sustainable in the long run ... they are going to go bust first.

I prefer my ISP to be around for a while and actually have a level of some after hours support as it is really tiring to switch providers in the middle of the month because it went bust.

Does anybody know the cost prices that SAIX ask for connectivity ???.
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Yep that is why I will stay with WA. They have proven themselves time and time again.
 
My isp has reduced their price in line with the new structure so I'm a happy camper. Cetirus paribus I now look at the customer service aspect and so there's no reason to consider switching.
 
LoneGunman said:
re ISP's gonna make each other bankrupt - nope, all the ISP's will continue to make a profit - this is just called 'the freemarket system'
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Spend some time on dslreports and notice how many of the smaller providers in the USA go bust or get swallowed up because they simply cannot compete with the big boys.

It is fine to compete on rock bottom prices but then what use if you can't make a decent profit and can't grow your business ???.
 
warichard said:
We are currently looking at various options that we can use to reduce our pricing, however, we personally do not feel those prices are sustainable in the near future (and long run) and are merely a response to an artificial drop in price produced by a new provider offering the service. The profitability of those prices is so low as to make it impossible to compete at those levels for any long period of time without making a large loss, and should Telkom impose different pricing (something which is entirely possible, and expected within the next month or two), those prices will in no way be maintainable, and will likely begin to rise back to the levels they have been.

We feel that the prices we currently have are the prices that are likely to be the most "stable" in the short and long-term, with "reasonable" fluctuations in price (unlike the "unreasonable" and artificial drops that we have seen over the past 2 days). We will however be making a favourable announcement shortly on both ours and the MyADSL forums.
Click to expand...


It doesn't worry me in the slightest, as I'll stay on a month by month basis, which is the benefit of these great offerings by the various ISP's

I've had nothing but good service from axxess and will continue using them, even if they are R10 or R20 higher than the competition.

I'm not being funny here, but it does seem to be a case of "sour grapes" from Web Africa - I could be wrong, but at the end of the day, if your not on a contract, who cares about stable pricing ?

If it fluctuates R150 one way and R150 the other, no big deal - swings and roundabouts - if you can afford the exorbitant price of ADSL in this country, a 100 here or there isn't going to break the bank.

I'd prefer to go with the outfit that rides the ups and downs, passing the savings onto the customer or the bad news, if it comes to that, than staying on "an even keel"

If I sit on R350 for 30gig for two months and then find it's now R500, I've saved myself R300, which I wouldn't have saved with an ISP that doesn't pass the saving on because they feel the drops are "unreasonable"

The customer wins and doesn't really care about the providers worries about their costs.
We don't give a damn if an ISP's prices are sustainable or not - we just take the bargains where we get them, which feels good.
 
thehideaway said:
No comment from the 'doob'??
admittedly the AYCE subscribers have had 30GB for R480 for 5 months now, but with 7 months to go, hanging around has proven the better approach.
Do u expect them to drop the contract price, Stoke?
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I should be so freaking lucky - I retain my hard won title : "born loozer" : okay!
 
I was contemplating on getting my current 20GB downgraded to a 10GB .... I think I will stick with the 20GB for the time being .... I made a smart move and joinedAxxess.
 
I agree. No real need to comment on whether or not a fellow competitors prices are sustainable or not.

Edit: Sheesh, so many replies so quickly! That agreeing was @ bb_matt's post btw.

:P
 
bb_matt said:
We don't give a damn if an ISP's prices are sustainable or not - we just take the bargains where we get them, which feels good.
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Do you want competition ???.

It is in our best interest to have a VIABLE alternative to the crappy poor offerings from Telkom Internet.
 
tibby.dude said:
The prices from HyperLink is too low to be sustainable in the long run ... they are going to go bust first.

I prefer my ISP to be around for a while and actually have a level of some after hours support as it is really tiring to switch providers in the middle of the month because it went bust.

Does anybody know the cost prices that SAIX ask for connectivity ???.
Click to expand...

Our prices are very low, yes. Same as Axxess at the moment. Trust me, those prices werent just sucked out of the air. We did our homework and projections. We have been around for a few years, and ADSL is not our main business.
Sure, our profit on the ADSL side will decrease (only because we are dropping the prices for our current customers as well), but in no way will be bad enough for us to go bust.

warichard said:
The profitability of those prices is so low as to make it impossible to compete at those levels for any long period of time without making a large loss, and should Telkom impose different pricing (something which is entirely possible, and expected within the next month or two), those prices will in no way be maintainable, and will likely begin to rise back to the levels they have been.
Click to expand...

I agree, we will probably not be able to maintain these prices once Telkom releases their new billing structure. It is impossible to say, as nobody is 100% clear on how Telkom's billing will work. We all know Telkom is planning to change their whole billing structure. But until that happens, I am sure Hyperlink and Axxess can maintain these prices.
And the whole SA ADSL community can benefit by this, even if it is for a month or 3.

This is exactly why we do not offer any contract, and work purely on a month to month basis with our ADSL accounts.


Jake-z
 
tibby.dude said:
Do you want competition ???.

It is in our best interest to have a VIABLE alternative to the crappy poor offerings from Telkom Internet.
Click to expand...
Precisely why telkom should not be allowed to be an ISP. One would have thought this would have been brought before the competition commission. SA does have one of those right??
 
tibby.dude said:
Do you want competition ???.

It is in our best interest to have a VIABLE alternative to the crappy poor offerings from Telkom Internet.
Click to expand...

I would be surprised if Telkom dont have similar packages come 1 August.
Cant see them giving up their ISP business which they would have to do if they dont have similar packages.
 
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