Telkom ADSL pricing structure slated

Hmmm, I have the same problem with BMW and Merc. Petrol is so expensive and the only barrier to an affordable BMW is that they give their cars away for free or drastically reduce the prices. ;)
 
moggie said:
Were you present at the debate? Do you know in what context he was quoted?
Click to expand...

I think it's unfair to pose this question to manesan, as he, like everyone else has commented based on the article presented..
 
I do not know if it was answered since the article does not indicate a response, but I would really like to know why there was nothing said about:
According to Wilcocks around 40% of the total ADSL bandwidth cost is related to Telkom IPConnect (IPC) charges, something which is widely seen as a significant hurdle to reducing ADSL bandwidth rates.
Click to expand...

What are the actual costs involved with the IPC?! And why does Telkom just avoid addressing this issue?

The R300 subject makes little sense to me, since Telkom's infrastructure has already been funded by taxpayer money, that means the R300 should mainly be going to maintenance and new acquisitions. We are paying R1800 p.a over an infinite period for what exactly? Excluding additional costs for ADSL, which runs off the same infrastructure. It's a shame Telkom doesn't believe in an open books policy so we can only speculate on anything.
 
Smiley_lauf said:
That is why the SNO, aka NeoFAIL!, should get its act together and majorly cut prices and give people TRUE broadband--but, no, they are in bed with the devil-telkom and others--u-scracha-my-back-I-scracha-ur-back!
Click to expand...

Rubbish, the fact is that Telkom is still in total control of the 'last mile', the copper line from the exchange(Telkom) to your premises... if Neotel were to offer proper broadband they would need access to this 'last mile' copper line... Telkom does not allow anyone access to this 'last mile'... that's why Neotel have been forced to use a wireless network to bridge that 'last mile' and overcome Telkom's block... as many of us, that use wireless broadband, know, wireless is not nearly as stable as a decent fixed line, my wireless 3G connection constantly suffers from packet loss, high latency and connection dropping(and I've got excellent signal)... while a fixed line offers very low latency and stability(usually)... so ADSL connectivity is controlled 100% by Telkom, and Neotel has been forced to use quasi cellphone network technology to offer a competing product... so in essence Neotel cannot compete with Telkom, because they aren't the 2nd fixed line operator, like they were meant to be!

Mr B
 
As unlikely as that R300/month may be, if it is indeed the case then it can only be ascribed to bad management.As someone already mentioned, overseas operators are providing the same service at considerably lower cost, despite labour & rental costs being considerably higher there. Hence, Telkom must be operating absolutely inefficiently to have such high costs. And why should the consumer pay for their mismanagement?Get those unproductive techs who work only 4 hours a day to be more productive , decrease time to fix, etc. Just stop ripping us off because you have the monopoly!!!
 
LancelotSA said:
Relating to this comment could someone please correct me if I am wrong but I pay analogue line rental of R131 plus ADSL line rental of R152.... is that not for the same piece of copper? Someone without ADSL is only paying R131 for that. Why? I don't use my line for calls at all.
Click to expand...

No
You pay for the copper to your house (analogue rental)
The ADSL rental is for the infrastructure behind the physical piece of copper. (DSLAM's etc)
 
djrwb said:
No
You pay for the copper to your house (analogue rental)
The ADSL rental is for the infrastructure behind the physical piece of copper. (DSLAM's etc)
Click to expand...

The way i see it should be....
Copper fibre etc you need with both so that is out of the equation....
Analogue - i don't want to pay for the "infrastructure behind this" telephone exchange etc...unless i'm wrong and you need this for adsl
DSL - yes baby! i'll gladly pay for this

ps you work for telkom?
 
BGE said:
Rubbish, the fact is that Telkom is still in total control of the 'last mile', the copper line from the exchange(Telkom) to your premises... if Neotel were to offer proper broadband they would need access to this 'last mile' copper line... Telkom does not allow anyone access to this 'last mile'... that's why Neotel have been forced to use a wireless network to bridge that 'last mile' and overcome Telkom's block... as many of us, that use wireless broadband, know, wireless is not nearly as stable as a decent fixed line, my wireless 3G connection constantly suffers from packet loss, high latency and connection dropping(and I've got excellent signal)... while a fixed line offers very low latency and stability(usually)... so ADSL connectivity is controlled 100% by Telkom, and Neotel has been forced to use quasi cellphone network technology to offer a competing product... so in essence Neotel cannot compete with Telkom, because they aren't the 2nd fixed line operator, like they were meant to be!

Mr B
Click to expand...

Why don't they build their own fixed line network then? Their license must have included the right to do this if they were licensed as a fixed line operator? It will be expensive in the short term but over 20 years I am sure they will make their money back.
 
Nice post djrwb. The problem is that the majority of posters don't have enough understanding of how business owners think and how capital allocation decisions are made and the pricing of these products based on these capital investments. Before I elaborate, just to be clear, I do think Telkom needs to reduce their ADSL access charges, this will come, because the spread and absolute levels of pricing between the different speed options are not optimal.

Your ADSL internet cost is made up of 3 basic costs:
1. Telkom copper voice line rental
2. ADSL port charge for ADSL infrastructure inside the exchanges
3. ISP charge for bandwidth usage

I want to concentrate on the first 2, since competition has driven the last one down dramatically recently and this is set to continue.

As regards to 1, many think because something is already paid for, in this case the physical copper line infrastructure, there is no costs anymore. This is the same as saying because your landlord has already paid for his house, that he is not allowed to charge you a market related rent anymore! Is this reasonable?

Further, there is of course ongoing maintenance costs and operating costs as well as overhead costs involved in maintaining a fixed copper line infrastructure and providing services over this infrastructure. I actually think the line charge is not expensive and if anyone thinks different, they are of course welcome to build their own network these days. The new legislation made this possible, but I dont see any big players rushing out to build their own copper line network! I certainly wont, because I dont think I will get a good return on my investment.
and then there is of course copper line theft of hundreds of million a year ...

Then lastly, the ADSL port charge. Now here I agree wholeheartedly that the costs are too high. The extra investment in infratructure for ADSL DSLAMS and other networking equipment, backups etc, was needed , but the charges are not economical with the costs in my opinion. These charges will come down I think, maybe very soon, because R400 for a 4mbps ADSL port is way too expensive.
 
Internet Solutions MD Derek Wilcocks added that Telkom does not only cash in on ADSL access and analogue line rental, but also on all bandwidth that ISPs sell to their subscribers.
Click to expand...

this stood out for me the most in this article... considering IS's ADSL price structure I saw last night... Almost fell off my chair...

Yes Telkom suck a$$ , but dont be a hypocrite Mr Derek Wilcocks
 
I agree with people saying that its complete and utter cr@p....

This is bad management. The fact that telkom see that they would not be competative in the local market where mobile phones will win over a land line call, means they are now trying to focus on corporates, who someone pointed out bring in R5000 aprox. per rented line. Also someone pointed out that the R300 cast and others are for Telkom being able to provide the line all the time. I.e you still have a service if something breaks, stolen, whatever...

ALL i want to say is DUH.... Telkom provides a service.... hence they should do better management of that service.... We shouldn't be GREATFULL for having a phone line, when in the rest of the world, besides africa its almost a right.... this is the ONLY continent where muppets think like that....

If telkom did their marketing and WORK correctly they will see that the cost of the maintanence? can be offset by more subcribers, even if its for ADSL. It seems we as per usual are subsidising the laying of phone cables to the poor again.... I didn't see telkom lay a cable to my house when I connect to ADSL... it was some guy with a little screw driver.... So all the cost are being offset for as long as they can onto us.... I pay R1000 pm and most of that to TELKOM.... and I dont even use the phone line or the voice service etc.. When my line was broken, cause of the wind... it took them almost 6 months to fix... to finally I phoned a manager and threated with court.... This is crap... telkom are firing people, so its not salaries.... its corporates who live in nice houses who run the bussiness over the internet from their nice homes..... Im so tired of this , you OWE me crap....

plus copper... in the UK its bloody fibre... HOW MUCH WILL BE CHARGED THEN!!!!!!

GET REAL... you are not fooling ME!
 
drukkie said:
The way i see it should be....
Copper fibre etc you need with both so that is out of the equation....
Analogue - i don't want to pay for the "infrastructure behind this" telephone exchange etc...unless i'm wrong and you need this for adsl
DSL - yes baby! i'll gladly pay for this

ps you work for telkom?
Click to expand...

R131.00 rental for local loop from exchange (copper/fibre (I wish)). After this normally the telephone all billing pays for the rest behind it.
Rxxx.00 for adsl links, (dslams, backbone form exchange wherever back to your ISP) Now this Rxxx,xx is far too high in my opinion

Try getting a diginet line from telkom. You pay for two sets of local leads (analogue copper line) two sets of NTU/STU's Two port charges and backbone charges (based on a per km fee)


Left the department Posts and Telcommunications in the early '80's
 
Last edited:
according to Telkom their prepaid service is
For only R270 new customers will get:

* Line Installation
* R130 yearly fee which lets you receive calls all year long
* R10 airtime
* FREE basic telephone instrument
* 2 entries into our competition draw


so for R270 for the year I can receive calls and it "cost Telkom R300 a month" I don't think so.
 
Bull@#$% always baffles brains.
Looks like i need to buy no name brand vaseline as its getting too expensive!:cry:
Last years excuse was the exorbitant cost of international bandwidth.
No surprises here Telkom have another excuse for 2010.
Telkom you can fool some people some of the time.........:mad::mad::mad:
 
TimTDP said:
My brother in the UK pays GBP30 (R339) per month.
for this he gets:
8 meg line
40gigs data
includes ISP charges
free calls within UK and certian countries in EU

And what do we get for double that? NOTHING
Click to expand...

He also gets to have his access to any site that may be or may in the future be linked to the distribution of copyrighted material blocked and if requested by gov have his access logs from his ISP sent to the authorities otherwise the ISP will be fined.

If I am not mistaken the law was passed yesterday in the UK, heck they even volunteered for a Chinese great firewall!

The point is we are fighting over affordable access to the Internet meanwhile back at the
ranch we have politicians preventing people from accessing websites and content they want to.
The Internet, the ultimate form of expression and freedom of speech and governments greatest enemy.

So MWeb started the "Free the Web" campaign and government with the entertainment industry started the "Kill the Web!" campaign.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X