Web Africa representatives better ANSWER!!!!

Can't you then have something like a prepaid blended account? 2GB International@R140(Asuming R70/Gb) and then 10GB Local@R100(R10/GB) which comes to R240? It will still be much more expensive but at least you have a 2 in 1 solution.
 
wamatt - so web africa won't be looking into this at all even to cut costs while keeping prices the same for consumers? come on now.. :)

Not at all, we've got some nice surprises planned around bandwidth and pricing. I'm just saying the above scenario AcidRazor painted is not feasible regardless of reductions in price as well. The fundamentals are wrong.
 
AcidRaZor, local only gigs are cross subsidised. It costs WA more in just IPC charges to provide those 30 gigs than the R 130 they charge. Similarly, blended gigs are cross subsidised by forfeited gigs, local gigs and cached gigs. In other words, any high-end-user product (like the one you're taking about) will only attract leaches like myself, thereby reducing the amount of forfeited gigs, local gigs and cached gigs. Thereby reducing the level of cross-subsidising by low-end-users. The best product for leaches like myself is one where I'm in the top 10% of users (which are actually loss making for the ISP) and the other 90% of users subsidise me.

If local and international were split by the ISP, then more gigs would be used overall (mostly by low-end users), and the cost to everyone would go up. For example: I spilt my own data, and download 35 gigs a month for R 239 . If everyone had their caps spilt (by their ISP), then everyone could download 35 gigs a month, and all of a sudden R 239 pm is not profitable any more. Price goes up. It's in my interest for things to stay the way they are.

The Drunkard speaketh the truth.
 
While ipc costs are so high, i think the most realistic area where you guys could make a difference is in the afterhours area.

IS is using it's spare nighttime capacity to offer 4 meg after hours. (way to expensive, although great value)

Cybersmart is offering nightrider. (only useful for smaller files/awkward hours/not cheap with large files)

Perhaps you could beat both by using your pending newsserver in an interesting way.
 
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Another way to think of it is like cutting a kilo of coke with a kilo of bicarb. You can sell it for half the price ;) Telkom's DO is blended for a reason. The pure is what you guys crave, but it costs.

Disclaimer: Hookers not included.

AcidRaZor, local only gigs are cross subsidised. It costs WA more in just IPC charges to provide those 30 gigs than the R 130 they charge. Similarly, blended gigs are cross subsidised by forfeited gigs, local gigs and cached gigs. In other words, any high-end-user product (like the one you're taking about) will only attract leaches like myself, thereby reducing the amount of forfeited gigs, local gigs and cached gigs. Thereby reducing the level of cross-subsidising by low-end-users. The best product for leaches like myself is one where I'm in the top 10% of users (which are actually loss making for the ISP) and the other 90% of users subsidise me.

If local and international were split by the ISP, then more gigs would be used overall (mostly by low-end users), and the cost to everyone would go up. For example: I spilt my own data, and download 35 gigs a month for R 239 . If everyone had their caps spilt (by their ISP), then everyone could download 35 gigs a month, and all of a sudden R 239 pm is not profitable any more. Price goes up. It's in my interest for things to stay the way they are.

You sure you following?. Check what you wrote again. Unless I'm misunderstanding you, you've just described discreet caps. Hence you've gotten yourself 10GB of pure international. For this account you'd pay a grand. Still happy? :D

Not at all, we've got some nice surprises planned around bandwidth and pricing. I'm just saying the above scenario AcidRazor painted is not feasible regardless of reductions in price as well. The fundamentals are wrong.

The Drunkard speaketh the truth.

No I really do understand... however

Explain Internet Solution's pricing then... why are they able to sell local only accounts for so cheap and why can they give Uncapped Express accounts for (a lot cheaper than I'm used to) if the whole cross-subsidizing thing is true? (which it is obviously)

For years people offered ONLY 3 gig accounts until someone broke the mold and offered more in increments.

You're basically telling me that because Telkom does it like that, so would you?

That's kind of a bummer... innovation stifled by the fact that someone else did it so why can't you.... hey I have an idea, why not charge the same for interconnect termination rates like everyone else! (just because you're not a mobile operator doesn't mean you can't :) )

Anyway. Sarcastic as that may be... how about the following, something I found to be relatively innovative:

Free access to facebook/twitter/internet banking sites

But that would probably cut into your profits too much too I guess...
 
No I really do understand... however

Explain Internet Solution's pricing then... why are they able to sell local only accounts for so cheap

Err because local traffic is cheap. lol?

Also they probably have really low utilisation on the 30GB accounts. If everyone used 30gb each month, IPC costs would rule it out.

Your previous post was around having pure international which is expensive.

You're basically telling me that because Telkom does it like that, so would you?
No not at all, I thought I explained very carefully its got nothing to do with what other ISP's do, just simple maths and rands.


Anyway. Sarcastic as that may be... how about the following, something I found to be relatively innovative:

Free access to facebook/twitter/internet banking sites

But that would probably cut into your profits too much too I guess...

Who knows we may just bring out the RazorDSL product. ;)

Watch this space. We very much busy behind the scenes, I'd rather be realistic always and underpromise. We know there is demand, as for "profits" well ask our CFO how much we've invested back into R+D, Capex etc. Pretty much all of it and it will pay off down the line.
 
Err because local traffic is cheap. lol?

Also they probably have really low utilisation on the 30GB accounts. If everyone used 30gb each month, IPC costs would rule it out.

Your previous post was around having pure international which is expensive.

No not at all, I thought I explained very carefully its got nothing to do with what other ISP's do, just simple maths and rands.

Who knows we may just bring out the RazorDSL product. ;)

Watch this space. We very much busy behind the scenes, I'd rather be realistic always and underpromise. We know there is demand, as for "profits" well ask our CFO how much we've invested back into R+D, Capex etc. Pretty much all of it and it will pay off down the line.

lol, if you name a DSL product after me it'll make my life! ;)

Thanks for the response. Just a quick note from me though... and one that I'm sure you'd agree with:

If you have a brilliant product at a low-enough cost with great service, you'll kill. I've "been in business" most of my life. And I found that I could sell more popsicles (had a small business in primary school) if my markup (and subsequently profit) was smaller than that of the "snoepie" that sold the same.

I usually sold out quite quickly and the demand meant I increased my stock by almost triple in 4 months. It took me a little longer to make the same profit what the "snoepie" did with less stock, but I still made a profit. Now I know the ISP business is not entirely the same thing, but I'm sure you understand the concept?

I for one am excited to see what you guys can offer seeing as you'll be self-providing and not just another reseller...
 
The Drunkard speaketh the truth.

Hmm.. but that does not fundamentally answer any of the uncapped questions here. Is contention the issue? Have you investigated SEACOM B/W?

So try to think inside/outside the box.
Uncapped (Yes and I mean no rolling thresholds..) + Shaped/unshaped to become the norm rather than the exception.

Business rules / Logic.

EDIT - @wamatt - Thx for the WA trial - Performance in the last couple of days indicative of final release or not? (I certainly enjoyed it) +1
 
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Hmm.. but that does not fundamentally answer any of the uncapped questions here. Is contention the issue? Have you investigated SEACOM B/W?

True Uncapped on 1:1 contention, meaning you can get your full line speed whenever you want for 24/7/365 if you like, would cost the ISP in the region of R5000-R10000 per MB of line speed per month (depending on volume discounts / size of ISP/supplier etc). This excludes additional support costs etc. So a 4mb uncapped line would cost in the region of R20-40k p/m. Obviously if you move to a 20:1 contention, then one would pay between R1k and 2K p/m for such a service @ cost price.

EDIT - @wamatt - Thx for the WA trial - Performance in the last couple of days indicative of final release or not? (I certainly enjoyed it) +1

No thank you guys for helping us test. Very helpful. And no the final will be much better. Engineers are trying out some new kit on Monday that will boost download performance more and we still have to get the gaming optimised, and couple of other issues everyone has raised.

We most likely have a mini-refresh update to go more to a Beta product. The trial has sort of been an alpha, we didn't know what to expect. :)
 
True Uncapped on 1:1 contention, meaning you can get your full line speed whenever you want for 24/7/365 if you like, would cost the ISP in the region of R5000-R10000 per MB of line speed per month (depending on volume discounts / size of ISP/supplier etc). This excludes additional support costs etc. So a 4mb uncapped line would cost in the region of R20-40k p/m. Obviously if you move to a 20:1 contention, then one would pay between R1k and 2K p/m for such a service @ cost price.

No thank you guys for helping us test. Very helpful. And no the final will be much better. Engineers are trying out some new kit on Monday that will boost download performance more and we still have to get the gaming optimised, and couple of other issues everyone has raised.

We most likely have a mini-refresh update to go more to a Beta product. The trial has sort of been an alpha, we didn't know what to expect. :)

Good to hear, and what about bumping the contention ratio up to 30:1, would that affect the speeds much?

I'm thinking concerning SME's as well, some businesses (like mine) can't afford a few thousand rand a month for an uncapped solution and the uncapped express is useless during business hours.

I'm sure everyone would be happy with a minimum guarantee of speed for uncapped. That way you can dynamically change the contention ratio (if at all possible) based on the time of day, much like uncapped express but less gay?

I won't mind paying (discounted rate) for a beta of your network. It appears it's going to rock... RaZorDSL ftw ;)
 
@wamatt
Thanks for the feedback. much appreciated.

Any 'hints' on new products from WA in the pipeline? (I am getting seriously tempted here)

And will the 'dynamic IP' (No Transparent proxy) remain a feature of the 'Go Live' service?
For RapidShare (free user) this has been awesome.
This could be a clincher for me.
 
True Uncapped on 1:1 contention, meaning you can get your full line speed whenever you want for 24/7/365 if you like, would cost the ISP in the region of R5000-R10000 per MB of line speed per month (depending on volume discounts / size of ISP/supplier etc). This excludes additional support costs etc. So a 4mb uncapped line would cost in the region of R20-40k p/m. Obviously if you move to a 20:1 contention, then one would pay between R1k and 2K p/m for such a service @ cost price.

Are these Seacom prices ? 4MB/s @ R20- 40 K per month 1:1
 
We most likely have a mini-refresh update to go more to a Beta product. The trial has sort of been an alpha, we didn't know what to expect. :)

Will there be a beta trial as well seeing the alpha trial is almost finished ? :D
 
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