Use it or lose it

Telkom... tick tock tick tock... that's your time running out..
 
haha Telkom is the biggest abuser by not using it :eek:
 
If they are not using all the extra bandwidth, they are more than welcome to plug me into the SAT3 line directly :D
 
Exactly what is going to be renegotiated in April? Exclusivity is the buzz word, but Telkom doesn’t have to give up much to have that dirty word (in their opinion) taken out of the equation! Look at the recent ADSL regulations, Telkom welcomed it with open arms and we were all impressed with them, till we found out that it was because the regulations were basically in their favour! What do they have to give up to have the brand of “Monopoly” removed as far as SAT3 is concerned?

How easily could Telkom twist a statement like this in their favour?

the agreement cannot be changed and as such no extension or diminishing of rights or changes in rights can be made other than what is already provided for and contained in the agreement

from: http://www.mybroadband.co.za/nephp/?m=show&id=3746
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thanks LabAnimal!

I think they can twist it very easily! They have not gotten where they are now by being idiots!
 
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How can they not use it? There's more than enough demand. Methinks they just have no idea how much bandwidth is really available!
 
tucj7 said:
How can they not use it?
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To create the illusion that bandwidth is scarce and therefore we need to pay high prices for it. There's a reason why they've refused to release contention ratios and usage metrics in the past...
 
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tucj7 you are right.. The demand is there. But the price is not.
So although people need the service, they not willing to pay the exhorbitant prices.

I.E. 20% utilization @ Rxx = R10 Billion profit compared to
80% utiliztion @ Rx = R16 Billion profit

Its not feasible as there will be more overhead costs, etc..

Basically Telkom is holding the country ransom. Morally its wrong. But in the business world is 100% legit. And its legit because GVT says so.

Now the world is moving forward. And our GVT nailed themselves in a jam.
 
Yes, I suppose you're right. It's depressing when bandwidth goes to waste! It's such a scarce commodity in this country.
 
Once again Govmnt proving that they have no idea how to handle the issue and confirming that they have cost this country billions! :mad:
 
Telkom's illusion

In the same way that De Beers has created (very successfully) the illusion that diamonds are scarce and valuable, Telkom has created the illusion that international bandwidth is scarce and valuable. By maintaining scarcity of supply in the retail market, they have been able to sell at a multiple of their cost. In truth, the cost of bandwidth in SAT3 is probably below $1000 per 2Mbps per month, whereas Telkom is selling at a multiple of this.
 
yup De Beers stated doing that + making part of culture thereby creating an eternal market :)
 
Open it up

Come on guys, reduce our international latency. Open the floodgates :rolleyes:

<smack> <smack> Yeah Right :mad:
 
A very good article that gives some specifics that I had not read about before, like this:

Pandey is quoted by ITWeb as saying “The leg from SA to London is priced at a certain level and that is an agreement Telkom has because of its exclusivity rights. However, if the London to SA circuit is priced at ‘x’, then Telkom charges five times that for the half circuit from SA to London”.

VSNL currently owns 33% of SAT3, a higher percentage than Telkom’s share in the cable. This means that bandwidth on SAT3 should be reasonably priced for Neotel, but because of Telkom’s exclusivity rights on SAT3 bandwidth out of the country this saving from Neotel will only come into effect for bandwidth into the country.
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It's preposterous the way Telkom is allowed to carry on as it does. This reminds me of those big food companies who overproduce, but dump the excess food rather than donating it to starving people (which could make the market price drop).

I hear Constitutional Court bells ringing.
 
VSNL currently owns 33% of SAT3, a higher percentage than Telkom’s share in the cable. This means that bandwidth on SAT3 should be reasonably priced for Neotel, but because of Telkom’s exclusivity rights on SAT3 bandwidth out of the country this saving from Neotel will only come into effect for bandwidth into the country.
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Isn't this backwards. Telkom has exclusivity on bandwidth into the country as that is what they charge for.
There is however hope. Telkom’s 5 year exclusivity agreement comes to an end in April 2007, after which Neotel may be able to get equal access to SAT3.
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That means they were only given exclusivity in April 2002. How could that have been allowed with their track record and who had access to it before that?
moosag said:
tucj7 you are right.. The demand is there. But the price is not.
So although people need the service, they not willing to pay the exhorbitant prices.

I.E. 20% utilization @ Rxx = R10 Billion profit compared to
80% utiliztion @ Rx = R16 Billion profit

Its not feasible as there will be more overhead costs, etc..

Basically Telkom is holding the country ransom. Morally its wrong. But in the business world is 100% legit. And its legit because GVT says so.

Now the world is moving forward. And our GVT nailed themselves in a jam.
Click to expand...
That is not the point. In the same way that Telkom is throttling bandwidth, and we all know how much they love to do that, they are throttling the cost artificially. It is their responsibility to make sure that the demand is fully used by pricing it at an acceptible level. Through high pricing they create the illusion that bandwidth is scarce and that the people who want it for gaming, streaming, p2p, everything broadband was invented for are abusers. FFS Telkom, give us what we want, we are willing to pay an acceptible price for it. :mad:

The other scoundrels are the government for allowing this to happen. They should enforce strict control on wholesale bandwidth pricing like they do with calling costs and scrap the control on retail bandwidth where it is not needed so cell companies can easily react to each others reduced prices.

Telkom, wait to touch tomorrow, 'cause today you have reached your cap. :rolleyes:
 
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