Agreement that cheap broadband in SA is ‘unrealistic’
The geographic nature of SA and its distance from the main internet lines of the US and Europe are major cost barriers, the players said.
SA would not see the low prices enjoyed in Korea, where everyone lives in easy-to-connect high rise buildings, said Telkom’s technical product development executive, Steve Lewis. “At the end of Africa putting in undersea cables costs money, which has to be recovered,” he said.
Telkom understood the need to make broadband available to everyone to boost the economy and improve education, the company said, and would continue to cut costs.
“We are not going to see the low ‘all-you-can-eat’ prices in SA that you see in the northern hemisphere,” said Brian Seligmann, MTN’s manager for 3G services. “The size of the country we have to cover is vastly bigger than any European country, yet they have more subscribers. But the more subscribers we get the more economies of scale work in favour for lower prices,” he said.
Or even Mauritius (~R400 Uncapped 512kb ADSL) using the SAFE cable.There's no reason why our broadband pricing can't at least fall to the same level as in Australia and New Zealand.
/me wonders how Telkom would respond to THAT.LaRoosTa said:Or even Mauritius (~R400 Uncapped 512kb ADSL) using the SAFE cable.
mystic said:Some elements of the media also contribute to the spin by publishing articles without any proper analysis behind it. Below is an example in today's Business Day where a article (http://www.businessday.co.za/articles/technology.aspx?ID=BD4A89434) has the following heading:
Write to business day telling them why you feel they should have used a different spin. Obviously when you get a monkey and a typewriter together, the monkey is just going to retype whatever piece of paper the Telkom *spit* spin machine hands him. At least thats what will happen until WE tell them the TRUTH of what they are printing.
gljackson said:...Using Telkoms own logic - why should they invest in the infrastrucure for two years, when its going to be unbundled anyway...
unbundle it now.