Reducing ADSL and broadband costs

It does amaze me that for years we have been told by ISPs that the reason for broadband in SA being multiple times more expensive than broadband overseas is due to high international bandwidth costs. And yet with international prices being slashed by over 60% in the past two years, retail broadband prices are still very much the same as they were.

We are now being told by ISPs that international bandwidth is actually only a small part of the cost.

This is so incredibly disingenuous:

Reed agrees with Knott-Craig’s view, pointing out that although European broadband prices are low, broadband bundle pricing still starts at around R200 to R300 per month. “You will find average sales per customer below that are not profitable if you want to retain a good level of service,” says Reed.
Click to expand...

But there is a massive difference between, for example, iBurst's 1Gig cap @ 1Mbps, or Telkom's Do1 @ 384kbps, and, say, the vanilla UK offering of 8Mbps uncapped. Yet they go for the same price.

Most people are happy to pay R200 to R300 per month. That is not the issue. The big issue is the miserable, tiny, paltry rations we get for our hard earned money.

I think we have to stop placing the emphasis on price alone and start placing it on value for money. Price is as long as a piece of string (i.e. any length). It is value for money that matters. And in terms of value for money, South African broadband users continue to get a very raw deal.

And industry leaders, judging by this article, clearly don't... give... a hoot*.


*feel free to substitute with your favourite expletive.
 
They're scared of change.

They actually think that charging more and having less customers, is the way to go. Why create masses of jobs by reducing bandwidth costs...?

Then they talk about "level of service"...

So, we must now understand, that they will not be able to offer decent service, if they drop the price...

Wonder what the next excuse is, for charging more than Openweb's 384k uncapped at R599...

We're listening...
 
Lightscribe said:
Do 1 is R199 + R131 line rental = R330

Just DSL without a price drop for no voice, would be R152 + R131 = R283

So, 1gig international and 10gigs local is R47

Even without a price drop for no voice, that R47 can go towards an uncapped 384k such as the R599 Openweb package in August.

R599 + R283 = R882 for 384k uncapped...
Click to expand...


Lightscribe said:
BTW. Anyone reading this must realise that there is simply no comparison between capped Do1,2 or 3 with uncapped.

I am pointing out that one can cut the price of uncapped 384k to R882 all inclusive.

The nearest competition, like Axxess, sells uncapped 384 at R899 for satelite and R999 for fibre.

R999 + R199(Do1) + R131(line rental)= R1329 or R447 more than my suggestion.

Satelite anyone? R899 + R199 + R131= R1229 or R347 more.
Click to expand...

Hope you have a few drinks with the money you save, people. :)
 
Gatecrasher said:
Except there two critical difference between Openweb's R599 product and Axxess' R999 product.

  • Firstly, if you have a 4MB/s line, the Axxess product downloads at 4Mb/s from 8pm to 8pm weekdays and all weekend. With Openweb you are throttled to a max speed of 384k.
  • Secondly, if you are over your threshold on the Axxess product, you are limited to 192k during working hours. On the Openweb product you are limited to 64k during working hours period.

If you have a 4MB/s line, I think you'll find the R400 difference well worth it. If you have a 384k line and go out to work on weekdays, the Openweb product is worth considering.
Click to expand...

:)
 
I will pay the R200/R300 but please give me something worthwhile for that money, not this pathetic dribble(384 capped) we are currently subjected too. The pages in the 'ISP Excuse Book' are looking to be well worn out now that we are heading down to excuse #47...
 
like i said before nothing much will change till after 2010!
 
South Africa is a very special place to do business--there a a small fraction of the entire population that contribute the market share for broadband, and that historically, has been people with steady jobs (LSM 5+); so why drop prices to cater for this group as this group has shown in the past that they will pay anything to get connected? The market/consumer did not "complain" when we moved from dial-up to ADSL and now highs-speed 3G/HSUPA. I feel consumers really have no choice in this country--we are famous for large corporates colluding to keep prices standard and HIGH (bread, etc). Why should they do any different for broadband pricing?

..well, like I said, vaseline anyone?
 
All it is is price fixing! I cant believe no one has sorted it out. I mean how on earth can mtn and vodacom have exactly the same price for data???
 
Quite ironic how the SEACOM cable went from all sorts of wonderful things and descriptions to "A good start"
 
Gatecrasher said:
None of this slowly, slowly, lets take time-out to think up excuses why prices won't fall... no, not in Kenya:

Data firm cuts internet rates by 90 per cent

What is it about South Africa business leaders that they are unable to see beyond the end of their noses?
Click to expand...

+10
We should shove more of this kind of evidence in the faces of those top players hell bent on continued skrewing of the public and demand lower prices, else jail time as has been indicated previously.
 
This is all about money and will always be about money no matter how hard we fight or try these money hungry whores of the data world control the switch that makes the interwebs go off or on. They will simply hold us for ransom and make us pay for what we want, there won't be real competition in the market for a long time to come and we will here excuses upon excuses.
 
Seacom & the isp's are just as bad as telkom and just jumping on the money making bandwagon.

Telkom has always said it is international BW that makes SA internet expensive,
Seacom etc idiots say its local **** that makes SA internet expensive

While in truth internet cost overall is just about f$ckall.
You pay crazy amounts per month for line hire for a line that has always been there and that you already pay for telephone use anyway.
DSLAM port, well within a few months of this "hire" you would have payed it fully, from there its just allout profit on it (does this mean I can go and claim mine when I dont need it anymore?)
And getting to the cost of international BW, SAT-3 etc has been payed 1000 times over, and its not like telkom payed for it in the 1st place. But in general international BW costs is not even a fraction of what they make it out to be.

There has been months where there were no international capping cause of system problems etc etc, and telkom has never been bothered by it much really. Any other respectfull company who are serious about bussiness and doing bussiness a decent, normal way would fix it asap & go crazy about the error that ocurred or simply loose to much money. Not telkom because simply BW cost them next to f$ckall anyway and no matter what really happens they are still raping you.

Problem is we cant do anything about it. SA is all about f$#cking the person next to you, so you can make money ie. SAD
Thats life? No thats life in SA
 
Gatecrasher said:
None of this slowly, slowly, lets take time-out to think up excuses why prices won't fall... no, not in Kenya:

Data firm cuts internet rates by 90 per cent

What is it about South Africa business leaders that they are unable to see beyond the end of their noses?
Click to expand...

It's always good to know a little bit about the market before you make a daft comment.

Kenya has thus far only been served by Satellite. Thus slashing prices by 90% is quite simple when you move over to high capacity fibre, because Satellite bandwidth is exorbitantly expensive. It's not at all the same situation as here.
 
I can't believe they are still playing the "Redundancy" card as an excuse. We all know that SAT3 and SEACOM now cost the same.

Another thing, pointed out already - noone is asking for a broadband service costing less than R200 a month. We are asking for more cap and speed for that R200 or more per month.
 
The difference is in other african countries, companies respect the gov + regulators more. None of the SA companies will pull the nonsense they do here, there for fear of getting the boot and having to sell up assets. Here they know gov will do bugger all.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X