Telkom Pricing: something to think about.

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ganymede1

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Telkom is currently arugeing that they need the monthly adsl rental to look after the lines and pay for the equipement. Well unless i am missing something... why does the monthly rental vary in price so much? (R200-R600) surely the equipement and maintenance costs are the same? Surely in terms of maintenance etc there should be no difference between the 192kbps or 512kbps.

According to normal business practice there is only one explanation - price discrimination.

Anyways my 2 cents.
 
agreed. Its the same equipment, the handbrake is just pulled a bit tighter.

I know its been stated over and over, but price variance on package speeds should be in the ISP portion of adsl cost.
 
i.e. telkom is ripping you off in 512kbps services as it only costs them same as 192kbps services. :P
 
i really dont want telkom to change anything at the moment except for the bloody R80 for the voice line wich can drop away otherwise ... the adsl line rental dropped to a rather acceptable level and i have no problem with the caps available so i really dont want this per gb **** to happen
 
SonZero your just scared that if they do change its for the worse - be positive man.
 
Well the problem is that it's the intl. norm to charge more for higher speeds even though it's the same piece of copper/cable etc, so that is what Telkom is going to argue (that it is a intl. norm)

If you think about it, it doesn't seem that stupid...
 
Except that Telkom are arguing that the line rental charge is for maintenance (for which I think it is highly excessive), and the ISP portion is for the bandwidth part of the costs.

So this method of charging allows them to make up things such as a 'downgrade charge', whereas if the speed of the package were part of the ISP portion, you probably wouldn't have to pay this. It would be as simple as signing up for a different account.
 
The problem is that they charge for the line speed, and then cap you at ridiculously low levels. The line speed and line contention is what you paid for and what limits you already. So why the cap as well?

The next great rip-off is per gig billing added on top of it. With some bull**** justification given such as "to protect the network from abuse".
 
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