These ADSL Pricing, WTF?

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Clipse

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Ok seriously, something does not look right, legit or whatever you want to call it.

Looking at axxess ads for instance, 3gig for R199 and then 5gig for R224 and increments of 5gig for R25 working out R5 / gig.. Seriously wtf is this?

It doesnt make sense paying R199 for 3gig and then R25 for 2gig more. Where is the catch, i really smell some dodgy illegal moves being made with whatever loophole.

Refering back to the Q & A with axxess for instance again, when the question is asked:

"<VortQuest> axxess, are these high account caps loopholes rather than things negotiated with telkom, as we are wondering why mweb is not getting in on this

<Axxess> Mweb is with IS. No idea about them(IS)"


There is absolutely no answer regarding the question, is it a loophole?


Shout and hate me, but really nothing is making sense and altho this is great having such low priced accounts I have a suspicion that all accounts = 3gig accounts that has just been altered to maximum of 30gig where the resellers still just pay for 3gig, making me think there is some sick profiting going on.

Brings me back to why webafrica isnt losing money and actually making a bit or breaking even with their R199 offer.

Oh well, call me paranoid bill and shout and scream at my post or feel free to post a proper reply :)
 
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I could swear I remember axxess saying it was a loophole at some stage of the Q&A.
 
Nope I read thru it and that was the answer when asked about it.. Eitherway, WTF.. so their making ****loads of money charging R350 for something they get for R165 ex vat.

And you worry about Telkom making money? I see way more wrong in this, the more **** gets exploited, the more reason for Telkom to really push up pricing as everyone keep on noting in 3 months time.

Im slowly getting pissed off while at same time would have loved to be happy about this.
 
In my opinion, they are trying to get into the market before the market is formed properly.
For example, LG Electronics SA is trying to get into the cell phone market right now.
They are losing about US$30 per every C1100 model is sold (Retail at approx. R459, in Europe those models are sold at about US$100).
And they are supplying about 30000 units per month for that model alone!
Once they get the market share, they will probably change the model which is more profitable.
They will eventually be settled in the market.

Webafrica has simillar strategy i guess?
 
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Clipse said:
Nope I read thru it and that was the answer when asked about it.. Eitherway, WTF.. so their making ****loads of money charging R350 for something they get for R165 ex vat.

And you worry about Telkom making money? I see way more wrong in this, the more **** gets exploited, the more reason for Telkom to really push up pricing as everyone keep on noting in 3 months time.

Im slowly getting pissed off while at same time would have loved to be happy about this.
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I suppose you could always ask them what they're paying :)

Seriously though, I understand how easy it is to be blinded by the sudden reductions - but the idea of them running at a loss is pretty much an inconceivable concept.
 
This is most probably a really stupid question but what do you mean by loopholes with regard to axxess? I hav a 6gig account with another service provider and am thinking of getting the 20gig with axxess soon,should I be weary of this upgrade in any way? :confused:
 
that is my question, if its a loophole, my suspicion would be that its simply 3gig accounts at R165 ex vat wholesale that they resell at 30gig via this "loophole" making more profit than Telkom per account. On the flipside, I suppose Telkom would take these isp's to court if it were illegal as such.

Now I also wonder, why only a few select isp's can offer this, and then every now and then a new one pop up with 30gig offerings, as if they just found the loophole and can also offer it ROFL

Heh.
 
beeti said:
This is most probably a really stupid question but what do you mean by loopholes with regard to axxess? I hav a 6gig account with another service provider and am thinking of getting the 20gig with axxess soon,should I be weary of this upgrade in any way? :confused:
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I see no reason to be weary of it, not if you're going with Axxess as their service is excellent. However, I would recommend going with Web Africa for the next 3 months because you can get 30GB @ R199. Their service is at worst the same as Axxess's and you can complete the whole process online. After the 3 months you can switch to another provider if the prices go up.

EDIT: Oh and remember to put in the promotion code if you do go with Web Africa, otherwise you're going to pay much more than R199.
 
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beeti said:
This is most probably a really stupid question but what do you mean by loopholes with regard to axxess? I hav a 6gig account with another service provider and am thinking of getting the 20gig with axxess soon,should I be weary of this upgrade in any way? :confused:
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For the time being wouldnt be overly concerned with how they do it - just accept that they do and take the 20g account. The general consensus is that telkom will be negating the 'loophole' in a few months but I'm sure there will be other options available.
 
Just gonna give it a try with axxess,read some good reviews on the forum.

Thanks TMoose for the info. sounds good will definitely check it out :D
 
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im also slightly concerned about the long term effects of this, It seems that Telkom are only trying to lure people into getting ADSL, only to announce a "new pricing structure" in the future, which will most likely be not much better than what we have now. these ISP pricings are not going to last, so what are we going to be paying in a few months? And no-one knows just what Telkom have in store. I guess only time will tell.
 
I think you should remove your sig Clipse. Maybe that could be your reason for this thread.
 
huh? lol whatever you think WiseCrack.. I just think bit further than the rest I suppose.

Whats the point of 3 month lower cost when the rebound everyone will be paying more?
 
I'm very happy about the latest ISP price wars but how sustainable are these???

If more and more users were registering for ADSL, I would see the sustainability of these prices. But because of Telkom line rental, the market is not really getting a large number of NEW ADSL users, even though the OVERALL ADSL price is getting cheaper because of the ISP charges. What's basically happening is that the current ADSL users are moving from one ISP to another, for example: several Telkom ADSL users have moved to Axxess because of their cheaper (and larger CAP) ADSL offerings. It just seems like sometime in the future, some ADSL providers may have to close business. And then the remaining ones may actually start raising the prices ones again.

The way I see it, Telkom has to scrap (or charge a minimal) line rental in order for new customers to get onto ADSL. That way, these ADSL providers can compete with each other over a growing market. Not a relatively static one.

What do you guys think???
 
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Manson,got the info for the promotion on 30gig at webafrica,gonna go with them for the 3 months then switch over to axxess coz axxess are cheaper without the promotion :D
 
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