Rustum
Expert Member
ADSL is expensive if you are looking for small packages - eg a 40MB, because you need to pay the lines and whatnot - but if you go up in the scale ADSL gets dramatically cheaper.
now, does iBurst want 10 casual e-mail checkers, or 1 person that downloads those people's cap's in a 1 hour sitting?
I suspect they would want both? It's easy to get addicted to browsing, youtube and whatnot. So you want the casual email checker. In a few months time, that casual will want more.
Businesses turn their backs on low end users, arguing that the return on investment is not worthwhile, but usually at their peril. We may scoff at the casual user, but that person is a user and ultimately a source of revenue. Multiply that by x and the casual user can tip economic scales in favour of a company that outweighs its 5 000 high end users.
Or companies introduce exploitative packages. I mean, sure, R69/month (incl modem) for an internet connection looks great on paper, and if you are a poor parent who'd like your kids to gain access to the new information culture, you may just consider that. So, the price doesn't appear exploitative. But, 40Mb? One uses that up in a few hours' browsing. Then there's the 24 month lock in.
And again we may scoff at people who fall for this deal (they should have known better, we say), but it is exploitative of people's ignorance and ultimately not good business practice.
I understand that pricing in South Africa may be inter-dependent on who owns which cables and satellites etc, but infrastructure costs are not the only determinants of what companies charge. Salaries and profit also play a role... What doesn't seem to play a role in pricing is a proper understanding of the market and its diversity. That means not only you and me.
We are happy to pay the prices we pay because, well, that's the South African way. We've learnt for long just to shut up and take it. But because we are happy to pay the prices doesn't mean that the prices are not extortionate. And focusing on the high end users who are happy to pay the high fees, again, doesn't make business sense. It makes quick profits, yes, for sure, but perhaps the grubbing for quick profits is just another South African pathology...