The real reason Vumatel's fibre prices are so high

[Jamie McKane]

The real reason Vumatel's fibre prices are so high

Vumatel’s fibre-to-the-home prices are far higher than other large fibre network operators in South Africa, including Openserve, Octotel, and Frogfoot.

The gap became even bigger after Openserve implemented free speed upgrades and price cuts on its wholesale fibre products in March.

 

[Mercury12]

The real reason Vumatel's fibre prices are so high: Profits

 

[Toxic T]

In the article it says "This price freeze will remain in effect until the Disaster Management Act is halted." I just received an email from cool ideas to say that my price is increasing. What gives?

 

[MEG101]

Vumatel is busy rolling out their network in my town, and being so much more expensive than other fiber operators, I will stick with my JustDSL 20mbps for R595.00 from Axxess which gives me uncapped unshaped unthrotlled service with No Fup. Fiber access on the same 20mbps speed on Vumatel costs R920.00 which is a total ripp off, not mentioning the R1495 installation fee. Openserve installed the JustDSL line for free and I am more than happy.

 

[Gazg]

The real reason Vumatel's fibre prices are so high.​

BBBBBBBEEEEEEEEEBBE?

 

[Mr Scratch]

The real reason Vumatel's fibre prices are so high.​

BBBBBBBEEEEEEEEEBBE?

How exactly is their financial problem caused by BBBEE?

 

[Lupus]

Cause we hold a monopoly in areas, so we hold them ransom.

 

[Vorastra]

@Jamie McKane Can you guys also focus on MetroFibre and find out what's going with their pricing?

 

[Vorastra]

Vumatel is busy rolling out their network in my town, and being so much more expensive than other fiber operators, I will stick with my JustDSL 20mbps for R595.00 from Axxess which gives me uncapped unshaped unthrotlled service with No Fup. Fiber access on the same 20mbps speed on Vumatel costs R920.00 which is a total ripp off, not mentioning the R1495 installation fee. Openserve installed the JustDSL line for free and I am more than happy.

A sad state of affairs when a DSL product is outcompeting Fibre.

 

[Lupus]

A sad state of affairs when a DSL product is outcompeting Fibre.

Scary hey, but that is how Vumatel has become.

 

[Polymathic]

So basically they are saying that they are a monopoly in so many areas that they don't need to lower prices

 

[WollieVerstege]

In the article it says "This price freeze will remain in effect until the Disaster Management Act is halted." I just received an email from cool ideas to say that my price is increasing. What gives?

Vuma is dropping some of their slower entry level options forcing people to upgrade to higher speed/ priced options.

 

[Swa]

Not our problem. Raising prices will just cause more people to jump ship. Then there's also 5G on the horizon that will make it much easier and cheaper to connect. Vuma chose to go with expensive tech and their installations are also among the most expensive.

This would be the perfect opportunity for Telkom to roll out in Vuma areas.

 

[LaraC]

Focusing on homes passed with no incentive for residents to subscribe is poor business practice.

 

[wernervn]

It will be interesting to see what Starlink does to their pricing/business model in a year's time

 

[LaraC]

It will be interesting to see what Starlink does to their pricing/business model in a year's time

The exchange rate might put a damper on their success.

 

[DrJohnZoidberg]

The real reason Vumatel's fibre prices are so high​

 

[charlieharper]

It will be interesting to see what Starlink does to their pricing/business model in a year's time

I agree with @LaraC . Unless Starlink does local pricing, given the exchange rate, I don't think it would be a major threat to most fibre providers, including Vumatel.

On the otherhand, if I was a WISP provider (or even traditional satellite), then I would most certainly be worried.

 

[nicroets]

When Star link launch they will have a monopoly in rural Africa, so they will price accordingly: > 1 USD/GB. No need to start a price war with WISPs or fibre.

 

[Sapphiron]

Focusing on homes passed with no incentive for residents to subscribe is poor business practice.

Yep, it's what happens when company valuations is more important than profitability and efficiency.