Where your ADSL money really goes

DJ...

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I read 24% IPC cost in the example. Where does the "up to 70%" bit come from? And where does Laurie Fialkov's 68% figure come from? Or am I misinterpreting something there?
 

Zyzzyva

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I read 24% IPC cost in the example. Where does the "up to 70%" bit come from? And where does Laurie Fialkov's 68% figure come from? Or am I misinterpreting something there?
68% of the data portion.

24% of the total cost which includes Telkom line rentals.
 

DJ...

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68% of the data portion.

24% of the total cost which includes Telkom line rentals.
saying that it is responsible for up to 70% of the cost base of providing an ADSL service to consumers.
said that IPC costs account for 68% of the cost of providing an uncapped ADSL account
Perhaps it is my lack of telecoms jargon knowledge at play here, but that reads to me as a ratio of total cost.

EDIT: I see my mistake now. It is a separate line item in the first spreadsheet. Thanks...
 

ponder

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I don't think we as the public will ever see any real figures.
 

elvis_presley

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I thought my money went to the people who make all the movies and tv series I download! Now I feel bad.
 

MickeyD

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So the inference is that Telkom makes massive profits from the wholesale trade. If this was true, why have other network operators not built their own networks to grab a share of these alleged profits?
 

zeely

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So the inference is that Telkom makes massive profits from the wholesale trade. If this was true, why have other network operators not built their own networks to grab a share of these alleged profits?
They have - they're even more expensive. 15k/month for a 15mb up/down fibre line from neotel
 

KOPITE

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I think we all know where the prices should be cut. RPM is just putting a graph up for Telkom to see that they the culprits as they don't understand the figures. Some of the savings should be spend on fixing Laurie's teeth first after the price reductions.
 

InvisibleJim

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I don't have a problem with having to rent a telephone line for ADSL as ADSL was designed to utilize leverage existing infrasturcture and you have to have a physical line regardless of whether or not you use the telephone service.

My problem is with the ADSL access charges which have always seemed to me to be excessive. Much attention has been given to the decline in numbers of fixed lines but Telkom have missed a golden opportunity to retain that business by pricing a great value add out of range of those other than the 30% or so of the possible market that would take ADSL pretty much regardless of cost.

Telkom moving to a lower margin, higher volume business model for fixed broadband is what needs to happen IMHO.
 

inferno

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This graph seems fine to me. Telkom are providing by far the larger and more expensive part of the service and so naturally they would be paid for each of those services. ISP's claim a whopping 35% of the charge for doing very little.
 

inferno

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So the inference is that Telkom makes massive profits from the wholesale trade. If this was true, why have other network operators not built their own networks to grab a share of these alleged profits?
Because its easier and cheaper to just be political, by going through the regulator and media in order to try force change.
 

KOPITE

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Why? Data is the cheapest and easiest of all the services to provide. I'm surprised it accounts for more than 5% of the costs!
Do you actually know how many undersea cables are running on the east and west coast of africa. we have enough data and its not the problem. the real issue here is to provide the masses with a proper infrastructure to maximise the use of the data. for an example if you see the data as the highway and see telkom's infrastructure as the donkey car on the freeway. i really cannot understand why the big boys like Mweb, MTN, VC, Cell C, Neotel grab this opportunity with full force to do the last mile for us. The long term benefit outways the short term financial loss. wake up people. Telkom got no leg to stand on, just like Oscar Pisstorius.
 
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