When we will see dramatically cheaper broadband

I stick with my.. if you want to see change, and not with a free breast from nando's ;) .., now is a good time to shop around for a wisp provider who's contract with saix is ending(assuming they are enterprising which most are). That's where the change is going to happen 1st, the others in particular adsl will be a knee jerk response to loss of market share in major metropoles where these guys are operating.
 
If I.S. can sell national bandwidth at R4 a Gig, his argument is flawed.
 
garp said:
It is a shocking indictment of Telkom that local bandwidth costs MORE than international bandwidth relayed over an undersea cable for 15000km. Surely, surely, this is a case for ICASA or at least the competition board, if ever there was one?
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Maybe we need to hand out a few more BMW 750i's so they can be comfortable and productive... Oh wait!
 
Actual Pricing

Everyone thinks that the ISP or carrier is going to rip them off on the new seacom cable

but no one knows the facts

facts are

A STM1 155mbps cost are Arround $ 100000+ per month depending on forword commitments

that works out to arround $ 700 per meg
then you must add on peering traffic in london etc ,because no one wants SA traffic no one wants to peer for free so add another $ 90-100 per meg for that

then add all the infrastructure costs arround setting up a mpls network of there own to carry QOS traffic like voip to london etc

the other problem is that the south african market might no be able to purchase all the 155 mbps in the first 6-9 months so the carrier must make a loss on the line as he has to pay the full price if they have sold it or not

Remember the local delivery cost will be around $600-$800 per meg for the local end bringing the total coat to aroung the $1500-$2000 mark

just the basic facts
 
I keep seeing the same pattern over and over again, and I can't understand it.

People keep saying that the local connection is a big expense/international bandwidth is almost the same price as international...

Now, correct me if I'm wrong, but 30gb of IS local is R4.33 per gig. How is that anywhere near the main cost of currently R60-R70 for international.

OBVIOUSLY!! the main cost is the internation link. Stop blaming telkoms local cost as such a big factor... it's a R4.33 factor!
 
While bypassing the local loop with wireless is great, people who want a low latency (like myself) connection (for gaming etc) wont really benefit. Wireless has so many flaws.

Burn said:
Exactly, all an ISP with a 'contract' needs to do it open another ISP with no contractual ties and then once the their contract expires merge the two. At least this is what I would do.
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But then, they will lose money on their expensive contract that is still running as all their existing subscribers would move to their cheaper one. Wouldnt make business sense to do this.
 
It does not matter what the price of bandwidth is if we still have to pay a landline lease plus ADSL lease at R500p/m roughly for a 4mb line. That is where the problem lies. These old copper wire cables were put there with our tax money and now we still pay so much for it??? Our only hope for really cheap internet is probably wireless technology - not reliant on Telkom backbones. Lets hope Neotel can seriously pick up thier infrastructure development. Maybe (big maybe - but not likely) companies like iBurst can become really competitive.

Now back to Telkom, they are updating their local loops to support 8mb. I chatted to a techie the other day. Looks like they are going to run wireless from the local exchange to residential rather than copper wire to residential. Hmmm, will have to see it though to believe! Interesting times ahead!
 
IRG said:
It does not matter what the price of bandwidth is if we still have to pay a landline lease plus ADSL lease at R500p/m roughly for a 4mb line. That is where the problem lies. These old copper wire cables were put there with our tax money and now we still pay so much for it??? Our only hope for really cheap internet is probably wireless technology - not reliant on Telkom backbones. Lets hope Neotel can seriously pick up thier infrastructure development. Maybe (big maybe - but not likely) companies like iBurst can become really competitive.

Now back to Telkom, they are updating their local loops to support 8mb. I chatted to a techie the other day. Looks like they are going to run wireless from the local exchange to residential rather than copper wire to residential. Hmmm, will have to see it though to believe! Interesting times ahead!
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I disagree. Leasing is only part of the problem. A cheaper and faster leased line won't get you far with a cap. Even if you put the saving on the line towards the bandwidth
 
am i the only person who couldn't give two ****s about converged services? screw your free minutes and all that other crap, how bout just raw data
 
burn said:
I disagree. Leasing is only part of the problem. A cheaper and faster leased line won't get you far with a cap. Even if you put the saving on the line towards the bandwidth
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At the rates we pay just for connectivity, we will never have 10gig or more under R600pm on a 4mb line. My guess is that eventually we will be forking out about R1000 - R1500 for uncapped, unshaped within the next 5years. Now that is realistic. But we know what type of conditions we are to expect, rolling windows, thresholds etc .... Maybe a sub R1000 uncapped is in the cards in the future, but I doubt we will ever have anything lower than R600pm.

We dont have the volumes of Europe and America to justify minimal profit margins, and business is business. I certianly would not get into it just to "help out" fellow South Africans. If I invest money into a venture, I want returns, and good returns. Its certianly not a charity! Unless local government steps in and does something (by the people for the people)
 
I'm contractually bound to it still and I've got 30% going through at R10
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Then I hope a new fresh company, not contract bound, will pop up and take the market share because of lower prices.
 
How great would it be if we can strike. For the month of August, no one buys any CAP or 3G data bundles. It will be really difficult to do that though...
 
I tried to follow the logic of this fellow but think he more confused than an actual spin doctor - his arguments are all over the place. For example:
1 If the incumbents are locked into current high Telkom contracts then the time is obviously ripe for a new ISP to clean up the market?
2 If local bandwidth is so difficult, why are there such good offers already in the market?
3 If the lower international tariffs won't bring down prices now, then why will Eassy make any difference?

Etc etc.
 
It would be nice for a change if they just stood up and said "We want the money" and sat down again. Instead of frustrating us with lies. We all know what is going on.
 
How about setting up a proxy server in the datacentre next to the seacom landing station? Use local only bandwidth (at ~R4 per gig) to connect to said proxy, then pay the cost for Seacom bandwidth?

Anyone want to explore this avenue?
 
Hey, I say "bring it"... the more bandwidth the better.

What exactly is the point of whining and crying? What exactly is that going to accomplish for you... other than give you an ulcer?

If Telkom wants to get more bandwidth to South Africa... I say well done.

If they want to build more towers, lay more cable, whatever... I say well done.

Every little step is a step toward more competition and greater access.

Eventually the dam will burst.
 
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