Theory on iBurst's New Plan

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boyequal

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I think I figured out what iBurst's new plan is. Keep customers waiting and waiting; after a while they will all get fed up and leave for ADSL. (iBurst get a kickback from Telkom from every ADSL conversion) Now, with more and more people leaving, their service improves as there are less people using their network. So, those people who remain will be happier with the service and stay when the price cuts finally hit.

What about the costs, you ask. Well, since the new iBoss system is installed, workload is reduced. Because of this, they can blame the recession and everyone except Jannie, Shaun, a random cheap techie and some old accounts lady, will be fired. iBurst is now a three-men-old-lady-company.

That said, I'm going to get ADSL as R199/GB is just too much for too little. Besides, my service never goes above 0.5Mb/s these days...

PS: If it's not obvious, the above was extreme sarcasm (except for the going to ADSL paragraph)
 
boyequal said:
I think I figured out what iBurst's new plan is. Keep customers waiting and waiting; after a while they will all get fed up and leave for ADSL. (iBurst get a kickback from Telkom from every ADSL conversion) Now, with more and more people leaving, their service improves as there are less people using their network. So, those people who remain will be happier with the service and stay when the price cuts finally hit.

What about the costs, you ask. Well, since the new iBoss system is installed, workload is reduced. Because of this, they can blame the recession and everyone except Jannie, Shaun, a random cheap techie and some old accounts lady, will be fired. iBurst is now a three-men-old-lady-company.

That said, I'm going to get ADSL as R199/GB is just too much for too little. Besides, my service never goes above 0.5Mb/s these days...

PS: If it's not obvious, the above was extreme sarcasm (except for the going to ADSL paragraph)
Click to expand...

Don't forget to count the tea lady! :)

"R199 per Gig" for your first gig is still one of the best deals around. Do a proper calculation what you pay for your first gig on ADSL (line rental + DSL access + Data) and you'll have to agree.

However, R199 for your 'second gig' is a real issue, i.e. top-up.

This is what you all have been saying and I can't fault the logic.
 
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This time next year, see who is still around... folks.

It won't be the orange bubble home wireless thing I can bet ya!

Bookmark this and check back again next November.

I won't say "I told ya so"... see...

Last gasp... cccoffff... sputtter... gone.
 
Jannie, with you admitting that top-up is the real issue, will you guys even be able to aggressively challenge the ADSL "top-up" pricing of, let's say, ZAR23 ?

I'm not being a chop, really just asking.
 
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so it is clear iburst is gonna charge axess fee!

i just hope it is reasonable with super cheap top up!
 
Jannie... I get why the first gig will be more expensive, really I do.

You need to cover the cost of the towers and infrastructure, thats great but why make top ups so much ? Surely the cost of the bandwidth should be cheaper the more you top up ?

What am I missing ?
 
Trixanno said:
Jannie, with you admitting that top-up is the real issue, will you guys even be able to aggressively challenge the ADSL "top-up" pricing of, let's say, ZAR23 ?

I'm not being a chop, really just asking.
Click to expand...

Honest question, honest answer; The current spate of data prices being released at below R30/Gig is way below cost and are the first steps expected in a market where suddenly there are hundreds of new entrants. These prices are not sustainable and will lead to many a closed door.

Clearly, as consumers, most people don't care that there will be a serious shakeout in the next few months and many of the current players will be gone. You just switch to the next provider and ride the wave of below-cost offerings. (nice to be a consumer :))

But the market will eventually sort itself and a few players with decent pricing and decent service levels will be left. Question is, how does one survive till then?
 
I can believe that sub R30/gig is below cost but R200 is 6 times that!

Survive the market by getting as close to R45/gig as possbile
 
Maybe the prices are below cost. Thing is in the South African economy, for too long, we have been starved of decent broadband and at prices which has been way above international standards.

As a consumer I have no idea what the said cost price is. But I can compare it to what seems to be the cost price in other countries. Their offerings are substantially superior and substantially better priced. Their consumers appear to be getting a fair deal.

One might argue that the local demand, or rather the number of consumers for broadband, is less than other international markets. So perhaps we should pay a little more for our data? Perhaps. But surely the price we pay for the connection into the network doesn't cost that much?

I priced the cost to upgrade my line from 384 to 4Mbs, and to upgrade the line, I am told will cost me +/- R 450 per month ... for what? It's the same line as the DSL 384 connection is it not? How long does the consumer have to pay off the cost of old technology and a line that's been there since pa fell off the bus?

I know this is a iBurst forum and thread, but the above example leads me to believe that wherever I go, as a consumer, in this market place, I am going to be hit with high prices.

It seem I cannot avoid high prices going with the conventional major players :(

So, yes, I am going to go where the ISP is willing to take a chance and try to give me a fair deal. Nothing wrong with the ISP I use. And I will continue to give them my support as long as they're out there. And I will also give them a heads up to my mates, as long as they are out there.
 
So lets All come to a common ground here.... its easy.

Jannie you said "data prices being released at below R30/Gig is way below cost"

Nerfherder and many others say R200 per gig is 4-6 times of what we should actually be paying.....



So what is the middle ground. Meaning, Iburst 1gig + some profit + Extra costs (Salary's,Equipment/tower maintainance, Phone bills etc..etc) + vat = ???


At the end of the day, we as the Iburst Client don't mind paying for the 1gig provided. Howmuch does it really cost you to provide the 1gig?

I do think it's been a long time now, the clients have all been waiting and awaiting the new pricing models etc...


Please advise.


Napalm
 
I don't believe for a second that R30 a gig is below cost. The billions in profit Telkom, Vodacom & company are making puts that lie to bed.

The market will sort itself out and those that are not flexible enough to adapt or tries and cling to outdated pricing regimes are the ones that are going to disappear.

I've got a bad feeling that we are just being stringed along by a company that has no clear strategy or vision for the future relating to their residential services.

Luckily we have choice now. :D
 
Well, hopefully iBurst can increase caps and reduce booster charges. I won't mind if they continue the shaping. It would be nice however to have better Skype PC2PC connections - perhaps it's a NAS issue or something else.
 
Napalm, I think you'll get the answer to that question in the announcement that is imminent.

Thanks for the response Jannie, will hold my breath for the announcement.
 
Hi Jannie. (I read the other thread)

That is understandable. Rather compare Apples with apples then.

So when will Iburst be able to charge a "Access" price so that we can buy the "data bundle" at a more affordable price??

Access price = Tower Maintainance, Staff , Support, Infrastructure, Connection fee's etc.etc.

Data Price = Cost of 1gig + Profit + vat


Regards

Napalm
 
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