Vodacom-why not cheaper than Neohell?

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How can neotel be cheaper than vodacom's 3G? Vodacom has more towers and servers?? Why do vodacom charge you so much for a few mb of data? Vodacom does not need to make use of telscum adsl lines like other isps need to. Vodacom has the money to offer 10gig accounts at a lower price than adsl? Why in the usa is wireless cheaper than fixed and here it is the other way around? Neohell has but a few towers even though they have problems they offer cheaper than adsl rates. Vodacom can crush the adsl market?!
 
Vodacom still use the SAT3 Backbone, hence the reason I asked v3g previously whether Vodacom will bring out cheaper packages to compete once SEACOM Lands.

The Official word from V3G whether they will actually use SEACOM and lower prices, is "We don't know"
 
That's not nearly a good reason for their high prices compared to Neotel, who also still use SAT-3. I think the official reason is that they use Telkom's lines within SA to get to most of their towers, which aren't fiber and very expensive. Neotel use their own fiber backend network which makes things cheaper.
 
Still not a good enough reason... Neotel also still use Telkom's network and will continue to until they can fully self provide.
 
well then if neohell connect to seacom succesfully, and get their act together, they might actually be a worthy ISP - we'll probably see some reports in about 1 - 2 months on this.
maybe they (neotel) were just waiting for SEACOM, but had to start market penetration early (and Telkom could have been giving them crappy rusted SAT3 links because they were seen as the enemy)

--- but back on topic though - don't vodacom have a local ring / loop they are building along with MTN or something? whats the status on that?
 
Vodacom/MTN are busy with their own local fibres as they start to self-provide. The next phase will be to self-provide within these local loops to their towers.

The question is how soon they will be willing to pass on any savings to their customers, taking into account their capital outlay?
 
moggie said:
The question is how soon they will be willing to pass on any savings to their customers, taking into account their capital outlay?
Click to expand...

as soon as the competition hits the fan. no seriously.

we all know they won't drop prices because they get it for cheaper - it is business.

but.....I have a feeling things are gonna get a bit shaky in the coming months, as cable after cable gets built on our undersea floors (5 or something of 'em, right)

as soon as these things are fully operational, i'm guessing there's gonna be a lot of sheeat flying around, as ISP's fight for users.

Think about it. after 1 ISP lowers it's prices dramatically to hook new users, and others start LOSING users, they are bound to fight back - they have to.
 
Quote from that link:

However, any facilities leasing relationship with Telkom will be ongoing, without any specific expiry date, and will be in accordance with the Facilities Leasing Guidelines as regulated by ICASA.
 
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