We have a meeting with Vodacom ADSL this morning... will be interesting to see their response now that we have more than figures to prove that these costs are completely possible.
So far IS do not have a single response which is very disappointing... if you know your business then you know your margins.
Can't be too hard for them all to say 'oh sorry.... that's right we've been selling to you ISPs at x5 of the actual price for years... now we're forced to, here's a reasonable price.'
ofc - the initial response to date have been 'historic contracts', 'unsustaiable', 'blah blah' - We've roughly worked out MWebs costing and with a massive investment of Rx00m then you can do this quite happily. The guys who supply the ISPs should have already made this investment and so should know that it's a possible price and their margins for resale. I do kind feel sorry for WebAfrica's economy of scale though... hopefully they can pull something out of the bag after all that money spent.
First off though, I just want the large wholesalers to cut their margins so they don't compeltely cripple the ISP competition arena... and soon!