SEACOM 30% to 40% Cheaper

J

jdjoubert

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Just heard this on 5FM news.

I don't know where they got the info from, but apparently we will be getting internet @ a 30% to 40% price cut.


My question is: Is this a price cut to the ISP's or is this the price decrease we as the consumers will see?

If it is the price cut that all of us will see, then (keeping in mind how corrupt these ISP's are) how much cheaper are the ISP's getting it from SEACOM?

Probably something like 70% cheaper and they pocket more $$$ again.

:sick:
 
Wonder where they got that info ?

I suppose that if that 40% is across the board then instead of paying R1000 for an uncapped line you will pay R600 ?
 
I heard the news too. The dude from Seacom said the 30 to 40% price cut is what he expects consumers will see.
 
I always have my doubts about these 30 - 40% claims. I mean, how do they calculate these things, since there are SO many variables.

It's well and good to reduce the cost of international bandwidth to ISP's by even 60%, but how much effect will it have on the ground, lets stop, and think about this for a minute.

The international input cost in providing services is simply to small a component to talk about these kinda price drops unless they are accompanied by big big drops in the price of national backhaul, bandwidth into Telkom's DSL cloud (What telkom called IP connect bandwidth, which is INSANELY over priced), national transit and other such components.

I ran some calculations and while trying to be very very optimistic, I put the cost of international bandwidth on oversubscribed dsl services to be less than 50% of the total input cost already! That means achieving a 40% drop in pricing without other price drops is just not realistic.

Before we can expect to see the prices start to fall significantly, someone is going to have to convince Telkom to drop the price of bandwidth into the DSL cloud, because at the moment for ISP's to actually make use of Seacom bandwidth for DSL clouds, they have to backhaul the DSL's onto their own international bandwidth. Keep that price of IPC high and you limit ISP's ability to do that, and limit the effectiveness of other international cables in which Telkom has no say.

I don't know, for me, while I believe Caps might increase, and over time prices will come down as competition steps up on backhaul and national infrastructure, and once local loop unbundling occurs prices wil come down further. But in the short term? We might see some international cap increases, maybe double the cap? triple the cap? But I don't see much more than that happening.

*Shrug* Just my thoughts, hopefully I'm wrong.

Andrew
 
Yes, that 30-40 % is obviously not referring to line rental or ADSL circuit rental, meaning that it could only be the cap that will become cheaper.
 
Nerfherder said:
Wonder where they got that info ?

I suppose that if that 40% is across the board then instead of paying R1000 for an uncapped line you will pay R600 ?
Click to expand...

if only that would happen, i could afford an uncapped account. R1000 is not affordable for me but i could probably stretch to R600 for uncapped. here's hoping :)
 
I'm already on 4mbs uncapped, so i'm hoping for the following

1) the price drops from a grand a month
OR
2) you dont get limited during office hours
or
3) a reasonable option that allows 4mbs 24/7
 
alf101 said:
Eish :( down to 30% now..
Only 3 SEACOM thread ago, it was 50%.
21895 SEACOM threads ago it was 90%
Click to expand...

Haha, maybe we should stop talking about SEACOM, before it ends up as a 10% increase "to cover construction costs" ala DME.:o
 
Alot of people don't seem to realise how easy it is to eat up these measly caps (<100G) with a fast connection even if you're not actively trying to, we need both faster connections and larger caps.


Nerfherder said:
R600 for 4meg 30 gigs... that's all I need.
Click to expand...
30 gig on a 4meg line is nothing, you could finish that over the weekend if you're not careful. R600 for 30Gb is not worth it even when compared to the current price/gb of uncapped accounts. R600 for 4meg uncapped would be good, unfortunately excluding Telkom's extortion called line rental.
 
SlowJoe said:
The international input cost in providing services is simply to small a component to talk about these kinda price drops unless they are accompanied by big big drops in the price of national backhaul, bandwidth into Telkom's DSL cloud (What telkom called IP connect bandwidth, which is INSANELY over priced), national transit and other such components.
Click to expand...

I tend to agree with you on this, however I can buy 1 GB of local data for R10, but 1 Gb of International is R70. So surely somewhere the cost is not that excessive as what the ISP would want us to believe for local bandwidth. To gain access to the rest of the local websites traffic has to pass to JINX and from there are routed to the ISP that hosts the site you are looking for. So getting to those 2 peering points don't seem to be that expensive or at least 7 times cheaper? So if Seacom has a peering point there surely you could realistically pay R 35 per 1 Gb for international if International drops 50% This does however make no difference to your line rental and also the fact that Telkom forces you to take a voice line doesn't help.
 
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