Why business lines are more expensive

[kaspaas]

Hi,

while ordering an ADSL line I popped the question why a business had to pay more than a residential user for the line.

The answer given was that business users are on "fault priority" and Telkom guarentees a repair within 24 hours. Telkom won't offer me the option of the lower fee with slower response if I prefer it.

Of course, the operator refused to fax me such a guarentee.

So I consider the service statement asa lie. Nothing more than a lame excuse to justify a R120 per month robbery from entrepreneurs.

I have the details of the person I spoke to, and will keep them on record for future reference.

 

[Chubs]

Kaspaas: Just a question, not sure if you know the answer. If you start a small business from home what is there to force you taking a telkom business ADSL line? Or could you get residential and just use it for business?

 

[SK33T]

You dont have to get ADSL ,nothing is stopping you from gettig a normal phone.
Just yor priority changes when you report a fault,buisness does get prefrence over residential.
I also think theres a difference with directory entries aswell.

 

[Chubs]

What I meant was how do they force you to get a business phone line, ADSL etc, if you work from home. Whats to stop you getting the home installation? This is just refering to some peoples comments about the difference in price between Business and Residential.

 

[SK33T]

OK now I see,sorry
You can get resedential plan for your home and use it for buisness,but When you log on during buisness hours (SA time)
youll notice that international sites etc are slower during buisness hours.
Im not sure exacly what they do but there is quite a difference in speed.
Then if you take the buisness plan,at night youll see the opposite.
Hope this helps.
Thats why I say there should be no plans,ADSL should be ADSL and have one plan regardless of buis or res,maybe a buis could pay a small fee for being registerd as a buis to get that priority for fault repair,but that should be the only diff.
Cheers

 

[Artagra]

mmmmmmm... you just shed some light on an interesting subject :

I've always considered my ADSL to be much quicker than my friend's (subjectively, especially during the day) - now I realise that mine is the 'business' account because my dad pays it through his company (which he runs at home)... interesting

Artagra

 

[frikv]

Maybe Telkom also thought that most business' are registered for VAT purposes and can claim it back - which will make it almost the same price as for residential customers....just trying to think like a Telscum accountant

 

[SK33T]

Not to sure about the VAT as they are the end user.
I think its only if you are reselling then you can claim the VAT back

 

[Chubs]

I am no expert but from what I know about Vat, you can claim it back as long as it is a legitimate business expense and you are Vat registered.

 

[frikv]

Trust me SK33T, I'm an accountant. If your business is registred for VAT you can claim it back. []