grok
Honorary Master
Hence the word 'bizarre' in the title ..
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Telkom's bizarre bandwidth prices
- Thread starter rpm
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Hence the word 'bizarre' in the title ..
I am not justifying Telkom's charges in the least - check my record for setting out where Telkom are clearly full of crap - but their explanation has some merit. Chances are of course that the PR guys are taking something that the tech guys said to justify a f-up the lawyers made.
The cost of terminating equipment and switching equipment is a major contributor to costs particular when your network is hetrogenous - so it is perfectly possible than for me to get a STM-1 link between Jbay and Jhb will cost more per month than between Melkbos and London - however this simply does not hold for Cape Town to Johannesburg. There is enough traffic on that route to get as cost effective a setup between a POP in Jhb and a POP in CT
The maths is really simple - what will it cost to install a fibre circuit between Jhb and CT - including two data centres. Triple that cost (to provide for taxes, regulatory overhead, maintenance and profit) and divide by 15 (make an adverse assumption about the life span) - so basically divide the cost by 5 and you have the annual cost for the circuit. Now take the capacity of the circuit build in some room and divide it into blocks for leasing with a minimum lease of 2 years - and build in your pricing discount and penalities for longer or shorter leases with 7 years as a median.
Assuming that it shouldn't cost a fifth of WACS to build (considering no submarine cable laying ship and the servitudes are already in place and the distance involved and most importantly fewer termination sites - only 2) the project is looking to me like a billion rand.
So you will want 208 million rand a year to run the circuit but you'll have say 4Tb\s to sell out. So lets put that as STM-1 capacity and you can have 26 of them. It works out quite nicely to 8 mil per year or R667 000 per month, and Telkom isn't doing badly for itself.
The cost of terminating equipment and switching equipment is a major contributor to costs particular when your network is hetrogenous - so it is perfectly possible than for me to get a STM-1 link between Jbay and Jhb will cost more per month than between Melkbos and London - however this simply does not hold for Cape Town to Johannesburg. There is enough traffic on that route to get as cost effective a setup between a POP in Jhb and a POP in CT
The maths is really simple - what will it cost to install a fibre circuit between Jhb and CT - including two data centres. Triple that cost (to provide for taxes, regulatory overhead, maintenance and profit) and divide by 15 (make an adverse assumption about the life span) - so basically divide the cost by 5 and you have the annual cost for the circuit. Now take the capacity of the circuit build in some room and divide it into blocks for leasing with a minimum lease of 2 years - and build in your pricing discount and penalities for longer or shorter leases with 7 years as a median.
Assuming that it shouldn't cost a fifth of WACS to build (considering no submarine cable laying ship and the servitudes are already in place and the distance involved and most importantly fewer termination sites - only 2) the project is looking to me like a billion rand.
So you will want 208 million rand a year to run the circuit but you'll have say 4Tb\s to sell out. So lets put that as STM-1 capacity and you can have 26 of them. It works out quite nicely to 8 mil per year or R667 000 per month, and Telkom isn't doing badly for itself.
That "article" is more useless than Telkom.
"Apartheid"? Maybe you should use some of those wads from your overboard site advertising to buy a dictionary.
Nice going, sensationalistic while very professional. The previous sentence used sarcasm, look it up in your new dictionary.
"Industry players"? Yet you quote an utterly stupid and hyperbolic line from some anonymous monkey. Oh but you also quoted someone from almost 6 years ago so that makes it all okay and current.
"Apartheid"? Maybe you should use some of those wads from your overboard site advertising to buy a dictionary.
Nice going, sensationalistic while very professional. The previous sentence used sarcasm, look it up in your new dictionary.
"Industry players"? Yet you quote an utterly stupid and hyperbolic line from some anonymous monkey. Oh but you also quoted someone from almost 6 years ago so that makes it all okay and current.
Knersus
Well-Known Member
There... I fixed it.