Seacom versus SAT3

I dont think prices will fall but we'll get more value for our cash.Notice how so many uncapped accounts(from IS) offer you full line speed after hours.E.g if you have a 4mb line you get 4mb after hours even if you only have 384 uncapped. Things are changing just not as fast as we all want it to.
 
If we look at MyBB reporting then drastic will be R 2.50 less per GB :p
 
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Im NOT the worlds biggest optimist .. but I still reckon reducing wholesale prices will have a knock on effect to the consumer. There isnt an ISP in the world who will want to sit with extra GBp/s that nobody is using.. cause it doesnt add to the bottom line... So either they buy less .. or they put specials in place to offload the surplus ..

Now the beautiful beast that is capitalism .. says that the Owner / Shareholders / Board of the ISP are thinking .. "why buy less ... when we can sell more if we bring down the price .. thereby increasing turnover and profit by X% ...." and then ISP 2 .. they thinking .. eish .. our clients are all moving to ISP 1 .. lets also give a better special .. and BANG .. end user gets happy.

If on the other hand .. they buy less ... Seacom say .. "eish .. we arent selling all our capacity .. we better put some wholesale specials in place to sell the surplus .. otherwise we cant recover our investment .. " .. and BANG .. the cycle repeats itself.

Hmm .. should be loads to see in the next few months .. ;)
 
On the positive side, Telkom South Africa has announced that its prices are now almost in line with Seacom’s forthcoming prices
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This confuses me every time I read it. How can this be?
Wholesale price reduction != consumer price reduction ? :confused:
 
jetlee said:
Im NOT the worlds biggest optimist .. but I still reckon reducing wholesale prices will have a knock on effect to the consumer. There isnt an ISP in the world who will want to sit with extra GBp/s that nobody is using.. cause it doesnt add to the bottom line... So either they buy less .. or they put specials in place to offload the surplus ..

Now the beautiful beast that is capitalism .. says that the Owner / Shareholders / Board of the ISP are thinking .. "why buy less ... when we can sell more if we bring down the price .. thereby increasing turnover and profit by X% ...." and then ISP 2 .. they thinking .. eish .. our clients are all moving to ISP 1 .. lets also give a better special .. and BANG .. end user gets happy.

If on the other hand .. they buy less ... Seacom say .. "eish .. we arent selling all our capacity .. we better put some wholesale specials in place to sell the surplus .. otherwise we cant recover our investment .. " .. and BANG .. the cycle repeats itself.

Hmm .. should be loads to see in the next few months .. ;)
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I hope you are correct, but history proves you wrong...

ISP:
We can sell 10 widgets @ R 10 profit = R 100 so why sell 100 widgets @ R 1 = R100 and overload our helpdesk and mailservers etc. with 100 cheap users ?
Unless you feel bound by conscience, which I do not believe most companies have, why would you want increase your workload for the same profit?

I see 2 options here:
1. Co-exist with other ISP's and all make a good profit...
2. Start a price war where every ISP loses

The bigger ones in theory could take out the smaller ones merely by just running on a tiny profit or even a loss until the smaller competitor's cash flow run dry, which will eventually leave us with one or 2 again which can dictate high prices and so the circle of (ISP) life continues....
 
Devo-sa said:
Let's be realistic - we live in a capitalist SOCIETY.

To me that means unless our authorities are riding this thing, making sure that competition and lower prices are introduced, the capitalists won't see any reason to not make as much by offering the minimum.
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[Ideological quibble sidetrack]

No.

No we don't live in a capitalistic society - at least not as far as broadband is concerned.
- Our telecomms market is heavily regulated and the entrenched dominant player was the former state-owned monopoly.
- We are where we are precisely because we do NOT have a free telecomms market. This is not capitalism.
- Remember, the state with their police, guns and prisons will shut down anyone who does not do exactly what they say in telcomms. This is statism, more akin to socialism, where most things are state owned, regulated and controlled.

Also, it's unfair to blame Telkom for the uncompetitive state of SA telecomms. The real scoundrels are the political leaders who architected and maintain the current system.

Calling for more State control and intervention is exactly the wrong thing to do. The State should get out of regulating and controlling businesses enterprises, and back to doing the things government was invented for in the first place.

Remember: Seacom is what free enterprise does. Quick. Fast. Cheap. They are limited in what they can offer not by Telkom but by the laws that our political master maintain - and part of what our political master do is protect Telkom from real competition.

With the oppressed masses, I cry again: "Laissez-faire!!"

[/sidetrack]
 
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george_vg said:
I hope you are correct, but history proves you wrong...

ISP:
We can sell 10 widgets @ R 10 profit = R 100 so why sell 100 widgets @ R 1 = R100 and overload our helpdesk and mailservers etc. with 100 cheap users ?
Unless you feel bound by conscience, which I do not believe most companies have, why would you want increase your workload for the same profit?
Click to expand...

Well, if your competition is selling widgets at R1 you most probably will sell them at R1 too.

why would the first company go below the R10 price when everyone sells them at R10 though? well - to get more people buying widgets from THEM.

Am I right?:confused:
 
and when mobile number portability came in.. it was going to revolutionize the mobile industry...

pffft
 
Wow...

Garyvdh said:
hehe... let's wait and see... shall we? Unless you want to make your bet now? :cool:
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Wow, anyone would be crazy to bet against such an exquisite argument.

So what's the proposed bet, proposed timeframe, and percentage pricecut vs now?
 
Ok...

Arthur said:
[Ideological quibble sidetrack]

No.

No we don't live in a capitalistic society - at least not as far as broadband is concerned.
- Our telecomms market is heavily regulated and the entrenched dominant player was the former state-owned monopoly.
- We are where we are precisely because we do NOT have a free telecomms market. This is not capitalism.
- Remember, the state with their police, guns and prisons will shut down anyone who does not do exactly what they say in telcomms. This is statism, more akin to socialism, where most things are state owned, regulated and controlled.

Also, it's unfair to blame Telkom for the uncompetitive state of SA telecomms. The real scoundrels are the political leaders who architected and maintain the current system.

Calling for more State control and intervention is exactly the wrong thing to do. The State should get out of regulating and controlling businesses enterprises, and back to doing the things government was invented for in the first place.

Remember: Seacom is what free enterprise does. Quick. Fast. Cheap. They are limited in what they can offer not by Telkom but by the laws that our political master maintain - and part of what our political master do is protect Telkom from real competition.

With the oppressed masses, I cry again: "Laissez-faire!!"

[/sidetrack]
Click to expand...

So Telkom making billions of profit by blatantly giving everyone the finger, the state getting 37% of that, and then making sure they keep getting it has nothing to do with capitalism...

Hmmm yes, good argument.. so now - your solution? Unless you just want to keep crying oppression...
 
superfly said:
I don't know why you think that you are going to get price cuts *now* when the cable hasn't officially been activated yet.

And on the subject of prices, I doubt we're going to *suddenly* have a price drop. It will most probably come gradually. I've decided to be positive and hopeful, though not unrealistically so. Let's see what happens... things are starting to change, and while it might take a few years, I think 5 years down the line we'll have significantly more/better/faster bandwidth than we do now, and most probably closer to international standards as well.
Click to expand...


B S!
 
Devo-sa said:
Wow, anyone would be crazy to bet against such an exquisite argument.

So what's the proposed bet, proposed timeframe, and percentage pricecut vs now?
Click to expand...

Simple... there will be price cuts before the end of the year. Actually. I have already won that bet... and the naysayers are strangely silent. I was told explicitly one month ago that there would be NO price cuts.

Here are my predictions...

Most ISPs will be running between ten and thirty percent cheaper by the year end.
ADSL speeds will increase
Caps will increase

the last two I'm pegging some time around October. ;)
 
And still no one takes into consideration the costs involved in interconnections between providers. Large providers wont carry traffic from Africa out of the kindness of their hearts.

Sure there will be price reductions, but dont get your hopes up too high...
 
Just_Ice said:
Proof of 30% drop?
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Friends,

It is with great excitement that I announce the launch of some magnificent
new products soon!

Herewith a sneak peak:

* 384k Uncapped ADSL (with no rate limits), running at 384k speeds day and night for around R599 (estimated price).
* 384k - 10GB ADSL account (not a VPN, a direct ADSL account that you pop into your router and have direct internet
access without proxies or VPN's) for around R349 (estimated price).

We are also focusing on some gaming specific products, that will allow high bandwidth to the most popular gaming sites.

Watch this space!

OpenWeb is about to transform!

Kind regards
Keoma Wright
Founder
OpenWeb.co.za
Click to expand...
http://mybroadband.co.za/vb/showthread.php?t=180295&page=2 :)
 
Ah, such a wonderful brew of rumour and counter-rumour. It keeps one glued to MyBroadband - much better than any trashy TV soap opera.
 
@LabAnimal - Tel_con will do very little, they are losing fixed line numbers but then increase rental, they think that at some low point they can pop in the clutch and turn it all around. They will not, Don't look for anything from them any time soon - @Arthur its sure ain't a free market, but Tel_con are just as much to blame, would think Mr Barry had some really good idea about how to rack it in with the coming of the Internet, as did $izwe with his Octopus charging system
 
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