When we will see dramatically cheaper broadband

km2 said:
I say GBs and MB/sec are directly comparable. When the GBs you offer double, the average line speed doubles. Average line usage is the only thing that matters when calculating pricing because that's what the ISPs work with. No one pulls down that 1GB every 1024 seconds because they are forced to spread that bundles of data out over the month. Everyone else has to spread it out too. The only calculation that matters is the one that goes:

2GB monthly cap/2592000 seconds in a month = 6172 kbps (that's over the whole month, but I know they'll change the calculation to reflect more the busiest times of the day)

If I have 20 000 customers, I'll need:

20 000 customers * 6172 kbps = roughly 120Mb/sec IPConnect line

Now what happens if I decide to offer them double the speed? Nothing. The calculation stays exactly the same, it doesn't matter to the ISP. If you end up using more data because the line is so fast, you'll run out of bundle on the 15th of the month. ISPs know that the majority of people will then adjust their usage so that they plan when they run out of bandwidth better, and that brings the average speed needed straight back into line.
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What?
Of course GBs and MB/sec are directly comparable.

Going back to Gaz's original post, 1GB for R4 is not comparable to 1GB/s for R350 000.
1GIGABYTE is not 1GIGABYTEPERSECOND.
Numnuts.
 
"Now, as a service provider, let's say I've got a Seacom connection coming into my data centre and I need to take you and bring you into my data centre... I've got to have an IP Connect between Telkom and myself," he says.
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But not everybody connects to Telkom. Thus as much as it sucks on Neotel at the moment, it may actually pay off as IP connect only applies to ISP's using Telkom/IS over DSL.
 
Why not create an ISP, which charges R40 per gig. You lot would pay the difference of R20 per customer, so you are buying the data for R60 a pop, subsidizing R20, and see if that wouldn't change the playing field? Im sure if everyone here contributed to this ISP then it would be able to run for the sufficient time needed to cause a great proper stir in the telco scene here... not that hard, cmon guys.
 
saffakanera said:
Why not create an ISP, which charges R40 per gig. You lot would pay the difference of R20 per customer, so you are buying the data for R60 a pop, subsidizing R20, and see if that wouldn't change the playing field? Im sure if everyone here contributed to this ISP then it would be able to run for the sufficient time needed to cause a great proper stir in the telco scene here... not that hard, cmon guys.
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That solution will not create a competition hole because the benefactor will still be Telkom. Sure, if it manages to run for a long period of time, then perhaps some of the baby ISP's will close down, which is also not in our favour.

All in all, not a good idea, simply because the baby ISP's are already smack against the Telkom brick wall.

We need the real ISP's, the ones with back bones to come to that party.
 
no-one wants to commit to a fixed price just yet because collusion will eventually find its way into the market.
Incremental price drops sets the stage for eventual collusion.
 
george_vg said:
He is contradicting himself... If contracts are ending in 2 to 3 years, then how will EASSy bring down prices in a year if they are then "contractually" still bound by another year to SAT3?

How are these contracts priced? If it is a question that you need to pay for x usage per month, then surely everything over that can be routed via SEACOM? until your contract expires...

and if his babbling is correct, then whoever's contract expires soonest will/can take the market over by pricing on the SEACOM cable :eek:

I still say we can learn a lot about spinning from these guys...factually, well you decide.
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http://posix.co.za/seacom
 
Keeper said:
I say if an ISP has a good special on, everyone goes onto that ISP. other ISP's will see this and lower prices too. if they do, we jump back to that one, and so on.

it needs to be done together for best results - perhaps a website showing the best ISP deal there is at that moment in time.

If they don't want to lower prices, we will jump around to others until they do. we need to stimulate competition ourselves.
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http://broadbandchooza.co.za/
 
eltherza said:
Then I hope a new fresh company, not contract bound, will pop up and take the market share because of lower prices.
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Simple. Create a new company and undercut the prices of the one with telkom contracts.

At a proper point, declare bankruptcy for the telkom linked company.

Devote your time to your new "free and fresh" company.

Smile as you watch telkom die...
 
Pilgrim said:
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?
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That is a great idea! Exept, as MidnightWizard mentioned, we have merely to use Midrand. :)
 
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Garyvdh said:
Yes, I do know more than I am allowed to say. Certain of my "sources" are bound by non-disclosure agreements. But even despite that, it doesn't take a rocket scientist to see the pressure that is building..... she's gonna blow.

As was mentioned above.... wireless providers will also be putting heavy pressure on pricing.

If Telkom went ahead and did what they actually wanted to do... they would get dragged before the competition commission every day... they would be accused by the competition of undercutting them again.

I can guarantee you 100% that Telkom is fully aware that in order to continue profits they need to grow the market... and in order to grow the market they need to reduce prices or grow their packages. I have this in first hand knowledge from someone on the inside.
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forgive me for saying this, either ur sources are lying or they are LYING.... telkom has no intention of doing anything of the sort otherwise they would not be doing some stunt like "if you sign a 5 year contract we will lower the costs by 18%", this sounds like a very competitive deal hey... OMG

if they really wanted to offer more packages without undercutting their competition, the first step is to LOWER the wholesale costs considerably so that is competitive, then they can also build packages around those prices to allow profit for their clients. but at a enormously useless 18% for a 5 year contract??????? they are out to kill the market.
 
now to the local bandwidth and GB MB/s issue.

if we can get a local only account that doesn't limit our speed of use at R4.33 per gig then pls don't bring in the mb/s issue sinces its a none issue when we can use it at ANY SPEED we want. Now the same thing on international will cost around R70 so mb/s is a NONE issue.

when mb/s is an issue is telkom charging us for bloody line rentals.
 
It will be 3 or 4 months before we really start seeing the savings that we have been waiting for; most companies will adopt a wait and see approach.
 
Sweet, so not only is telkom going to see its gat, all these ISPs with long term contracts will too. All we need is new ISPs that sign up with Seacom exclusively.
 
Rouxenator said:
Sweet, so not only is telkom going to see its gat, all these ISPs with long term contracts will too. All we need is new ISPs that sign up with Seacom exclusively.
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Exactly how "long" are these long term contracts anyway? SEACOM was known to the public in 2007 - surely secret negotiations had been going on at least a year or so before and what about prior feasibility studies which would have got the big bosses thinking about not renewing long term contracts ...
 
It is in the numbers!

For the first time the broadband users has the ball in their hands, let every adsl user boikot their service and thus force all the ISP's to drasticly lower their rates. I for one, has already informed my ISP as such. Lets stand together and achieve something, we've been milked far to long. Broadband has always been easy money. Let them produce. Bandwidth should be about 90 % cheaper and more aforadable, than they are.
 
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