theory about the slowdown

jakes your thinking is simplistic, first the network needs to pay for itself for all we know the "profit" from the bandwith or customer fees has to be planted into the cost of the infrustructure to pay for it making it not profit.

There are way more costs than just how much they get per MB or per customer, they are paying staff they have to pay for a network infrustructure, a customer support infrustructure (even if you think it "sucks" its still costing money) and of course advertising.

There is no way they launch in april and they're already in the profits, trust me, if that were the case there'd be alot more wireless internet startups. They probably have projections of a year or so to turn any profit.

But of course we don't know thier costs or profits at all.
 
Quote from City Press article, 27 Feb 2005, on their site:

When Wireless Business Solutions (WBS) announces plans to invest R400 million over a three year period to provide high speed internet access to township residents, little did it know that there would soon be relief to help speed up the implementation of their infrastructure rollout Thami Mtshali, chief operating officer of WBS, said he welcomed the 1% drop in corporate tax. He said: "To us as a growing entity the savings that will result from the drop will boost our reserves and allow us to invest in our rollout programme." Mtshali said the relief measures will improve WBS's cash flow status. He said of the R400 Million investment the company would build 100 base stations, mainly in townships across the country. WBS had already spend more thanR100 million in this.​
 
Wild speculation...

noone said:
ic, you catch more flies with honey... all im saying
Click to expand...
Ok, had to try figure out what you meant there - been a bit distracted since my last post ;).

Noone, if I understand you correctly, you are saying that WBS did not implement the cap during pre-launch bcos they wanted to maximise the number of suckers (flies) that would sign up before the cap kicked in, correct?

If that's what you meant, then yes, I think you are totally correct, and I don't know why I didn't twig - perhaps bcos my Burst-i problems have not allowed me to take advantage of the bandwidth/download fest (it's sad but since January I've just learnt to accept that I can occasionaly send/receive email & post here, but 0 downloading). That being the case, it does go back to what I said when WBS 1st started advertising on 5fm (somewhere in these search results), that WBS should be concentrating on getting iBurst & system working 100% during pre-launch & not signing up suckers...i.e. the implication was that WBS unofficially launched (during pre-launch) whilst not being ready to do so :( - all about the money...
 
noone said:
lol, bee's don't like honey, they make honey

flies like sweet things more than ****, the only reason they're around **** is because it's where they mostly lay eggs.
Click to expand...
maybe WBS messed up the saying too and thats why the service of late has been sh1tty
 
Jakes said:
I was told WBS are paying UUNET R89 per client. The cap is just a "speed control" there are enough bulk bandwith that they bought from UUNET. Our company is buying bandwith via a reseller for R0,24 p/MB out and R0,08 p/MB in and our reseller are buying it bulk from UUNET and I don't no what they are paying. We tried to go direct but are to small. UUNET quoted us R0,25 in and out p/MB. I presume WBS is paying about R0.081 p/MB (Telkom cost on ADSL R249 for 3gig = R0,081 p/MB). Ok to make my point, the cost for a 3gig client for WBS is R89 + R249 = R338 p/m. WBS client base now 4000 users before the launch. So with a gross profit of R1,35mil a month I think there are now enough cash to pay for bandwith. btw. the can ask the LoneGunman for a shortterm loan if there are a cash flow problem.

OK this is my theory!
Click to expand...

Any company that invests a significant amount of money in their network (400 mil over 3 years as stated) would need a ROI of at least 2 years and grow their client base exponentially to achieve that.

Unfortunately the mentality within South Africa is that "we'll give you less for more"

What they do not realise is if they DID infact give us a 1mb connection with a 3 gig cap @ R499, they'd grow that consumer base even faster.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X