VDSL price drops?

P

PsyCLown

Expert Member
Joined
Dec 23, 2006
Messages
1,190
Reaction score
5
Location
JHB North
Hi all,

Hope this is an alright section to post this in.

Does anyone have any idea when the other ISP's may follow suit with regards to decreasing the VDSL monthly rental prices?
Really want to upgrade to a 20Mbit line but wanna wait for the price drop first.

Thanks,
Psy
 
Axxess has had their price reduction for a while now... This is the internet we are talking about.
New releases and news become old and forgotten after a few days / a week or two generally.
 
It is funny that other ISP's have not done anything. Very funny because if Axxess reduced prices that means that the wholesale prices are in affect from Telkom wholesale so why are ISP's intentionally keeping prices high? I don't understand.
 
cavedog said:
It is funny that other ISP's have not done anything. Very funny because if Axxess reduced prices that means that the wholesale prices are in affect from Telkom wholesale so why are ISP's intentionally keeping prices high? I don't understand.
Click to expand...

I like money.
 
cavedog said:
It is funny that other ISP's have not done anything. Very funny because if Axxess reduced prices that means that the wholesale prices are in affect from Telkom wholesale so why are ISP's intentionally keeping prices high? I don't understand.
Click to expand...

Probably due to margin squeeze.
 
Chevron said:
Probably due to margin squeeze.
Click to expand...

I don'y believe that though. They are now actually making money out of line rental. Before the prices was in line with Telkom but now its been dropped so they are still charging the customers the same price but Telkom charges them less. Its profit for the ISP's. To me its like free money to the ISP's because at the end of the day if there is a adsl fault it always gets redirected back to Telkom to fix.

You just need email staff to forward the query to Telkom and done. I think its unacceptable honestly.


EDIT:
Lets take Afrihost as a example pricing wise:

40Mbps VDSL line rental now with them is R789. Axxess is charging R535 for the line now since they dropped prices. Now one have to assume that R535 is not what Telkom Wholesale charges so there will most likely be still a small margin of profit for Axxess there however slight it might be.

That is at least R254 they are charging more than what Telkom Wholesale sell it for.

Lets say they have 30 x 40Mbps VDSL users. That is R7620 FREE MONEY they get every month just from these customers. Sorry that is just absurd and Telkom should actually advise ISP's at what the max rate is that they may resell adsl lines at.

The above is just purely a example of how overpriced the VDSL line rentals are with ISP's now and not only directed at Afrihost.
 
Last edited:
cavedog said:
I don'y believe that though. They are now actually making money out of line rental. Before the prices was in line with Telkom but now its been dropped so they are still charging the customers the same price but Telkom charges them less. Its profit for the ISP's. To me its like free money to the ISP's because at the end of the day if there is a adsl fault it always gets redirected back to Telkom to fix.

You just need email staff to forward the query to Telkom and done. I think its unacceptable honestly.
Click to expand...

You have never seen the inside of an ISP have you?

There's no "send off an email to Telkom and done". You have to call them on a daily basis. That means more staff are needed. Not really "free money".

Anyway if it's bugging you so much just move your line to axxess. That's what competition is all about.
 
Chevron said:
You have never seen the inside of an ISP have you?

There's no "send off an email to Telkom and done". You have to call them on a daily basis. That means more staff are needed. Not really "free money".

Anyway if it's bugging you so much just move your line to axxess. That's what competition is all about.
Click to expand...

I have not see the "inside of a ISP" so I don't mind being corrected at all. I'm just wondering why Axxess can then work at a loss.....

Nah I did think about it but I'm happy with my Telkom Do Elite bundle. The do bundles from Telkom is very well priced and they have not even dropped the 20Mbps and 40Mbps pricing too.
 
cavedog said:
Lets say they have 30 x 40Mbps VDSL users. That is R7620 FREE MONEY they get every month just from these customers. Sorry that is just absurd and Telkom should actually advise ISP's at what the max rate is that they may resell adsl lines at.

The above is just purely a example of how overpriced the VDSL line rentals are with ISP's now and not only directed at Afrihost.
Click to expand...

That amount doesn't even cover the CTC for one support guy that they'd need to call Telkom everyday.
 
cavedog said:
I have not see the "inside of a ISP" so I don't mind being corrected at all. I'm just wondering why Axxess can then work at a loss.....

Nah I did think about it but I'm happy with my Telkom Do Elite bundle. The do bundles from Telkom is very well priced and they have not even dropped the 20Mbps and 40Mbps pricing too.
Click to expand...

Axxess' business model seems to be low margin, low quality. Everyone does things differently.
 
cavedog said:
I don'y believe that though. They are now actually making money out of line rental. Before the prices was in line with Telkom but now its been dropped so they are still charging the customers the same price but Telkom charges them less. Its profit for the ISP's. To me its like free money to the ISP's because at the end of the day if there is a adsl fault it always gets redirected back to Telkom to fix.

You just need email staff to forward the query to Telkom and done. I think its unacceptable honestly.


EDIT:
Lets take Afrihost as a example pricing wise:

40Mbps VDSL line rental now with them is R789. Axxess is charging R535 for the line now since they dropped prices. Now one have to assume that R535 is not what Telkom Wholesale charges so there will most likely be still a small margin of profit for Axxess there however slight it might be.

That is at least R254 they are charging more than what Telkom Wholesale sell it for.

Lets say they have 30 x 40Mbps VDSL users. That is R7620 FREE MONEY they get every month just from these customers. Sorry that is just absurd and Telkom should actually advise ISP's at what the max rate is that they may resell adsl lines at.

The above is just purely a example of how overpriced the VDSL line rentals are with ISP's now and not only directed at Afrihost.
Click to expand...
Haha I think you didn't read the article which said Telkom sell these VDSL 20mb at R300 and 40mb at R375 so Axxess makes R125 on 20mb VDSL even after price drop
 
I think we all expected the other ISP's to follow suite after Axxess dropped their line rentals to be inline with the Telkom wholesale VDSL reductions?
 
citizensa said:
Haha I think you didn't read the article which said Telkom sell these VDSL 20mb at R300 and 40mb at R375 so Axxess makes R125 on 20mb VDSL even after price drop
Click to expand...

I did so my comparison is actually favouring the ISPs as they are making even more.
 
I agree with CaveDog and the OP.

The wholesale price changes for ADSL / VDSL line rental were announced before the end of last month already. The only ISP that has publicly responded at retail level so far is Axxess.

A week or so after the wholesale price reductions where announced I had a Telkom door to door salesperson visit with an offer of R524 (or thereabouts) line rental for 40Mb VDSL, if I remember correctly it was only 40 or 50 bucks more than what I am paying for my 10Mb line rental.

They wanted me to sign a 24 month bundle contract (which included the Pace router), which I refused, but I did order the 40Mb line at the new rental price sans the router which I had already purchased.

To date, that order has not been effected by Telkom ISP, and the call centre doesn't appear to know about the order at all.

I suspect they are waiting until the new retail prices are publicly announced.

Sounds like the door to door Telkom salesperson and Axxess may have jumped the gun on the price adjustments.

Regardless. I will wait till the end of the month. If by then Telkom ISP has not reflected the wholesale price reduction I will move the line to Axxess. Would prefer not to, but if Telkom can't get the ***** together then so be it.

Phaedrus
 
Last edited:
IdlePhaedrus said:
I agree with CaveDog and the OP.

The wholesale price changes for ADSL / VDSL line rental were announced before the end of last month already. The only ISP that has publicly responded at retail level so far is Axxess.

A week or so after the wholesale price reductions where announced I had a Telkom door to door salesperson visit with an offer of R524 (or thereabouts) line rental for 40Mb VDSL, if I remember correctly it was only 40 or 50 bucks more than what I am paying for my 10Mb line rental.

They wanted me to sign a 24 month bundle contract (which included the Pace router), which I refused, but I did order the 40Mb line at the new rental price sans the router which I had already purchased.

To date, that order has not been effected by Telkom ISP, and the call centre doesn't appear to know about the order at all.

I suspect they are waiting until the new retail prices are publicly announced.

Sounds like the door to door Telkom salesperson and Axxess may have jumped the gun on the price adjustments.

Regardless. I will wait till the end of the month. If by then Telkom ISP has not reflected the wholesale price reduction I will move the line to Axxess. Would prefer not to, but if Telkom can't get the ***** together then so be it.

Phaedrus
Click to expand...

Did you also notice that now Axxess are also shaping their business accounts?

Some ISPs try give you quality, some ISPs try give you cheap. You can choose which you want.
 
I am sure the other ISP's will follow, myBB did a write up on it and the ISP's said they will pass the savings onto their customers.

Fingers crossed it happens month end, then I can upgrade to 20Mbit \o/ For basically the same price!
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X