Why Openserve customers pay more for fibre in South Africa

Jamie McKane

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Why Openserve customers pay more for fibre in South Africa

MyBroadband has run several fibre package comparisons across multiple ISPs, and the results have largely reflected a competitive and healthy ISP industry which benefits the consumer.

They also portrayed an interesting difference in prices between fibre network operators (FNOs). Specifically, Telkom's wholesale infrastructure division, Openserve, seemed to be the most expensive option for South African fibre users.
 

Swa

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BS. Vumatel is R649 on cisp for 10/2 where Openserve is R499 for 10/5. If anything they are more competitive where it matters and don't artificially limit upload speeds so you have to take a more expensive package. I never thought I'd say this just like I never thought I'd say it about the mobile operators but our fibre providers are behaving even worse than Telkom with their price gouging.

The only one I can find that beats them is Mitchell's fibre.
 

wingnut771

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BS. Vumatel is R649 on cisp for 10/2 where Openserve is R499 for 10/5. If anything they are more competitive where it matters and don't artificially limit upload speeds so you have to take a more expensive package. I never thought I'd say this just like I never thought I'd say it about the mobile operators but our fibre providers are behaving even worse than Telkom with their price gouging.

The only one I can find that beats them is Mitchell's fibre.
vuma are the expensive ones now.
 

pinball wizard

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Oooops Cybersmart is in trouble for breaking the NDA :oops::popcorn:
What?

Openserve's IPC and NNI pricing implications on their wholesale cost are common knowledge. At least they have been mentioned many, many times here.
 

cavedog

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What?

Openserve's IPC and NNI pricing implications on their wholesale cost are common knowledge. At least they have been mentioned many, many times here.
I have asked ISPs well known and small privately just for a hint at how much it costs and they always just say it's very expensive or is mor expensive that transit to London ect never was figures posted publicly unless I missed them by the looks of it then.

Also Openserves response:

“Openserve, as is the case with other licensees, operates in a regulated environment and conducts business from a wholesale perspective on a contractual basis with ISPs and other clients and, as such, deems it inappropriate, and in fact unlawful, to discuss costs and pricing publicly,” the company said.
 

Lupus

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Was going to say Vumatel is almost the same and sometimes it can be more expensive, they even had an increase over the last year.
 

Icemanbrfc

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I don't get this... The whole idea about moving away from Adsl, was better quality of connection, but most importantly, the cost being cheaper. Yet, I notice that on say a 20/5 package, some of these providers are charging as much as what we pay for a 20meg Adsl line which includes line rental.

Now I don't really understand that. It's like they know people are desperate for Fibre, and would pay a premium, so let's charge them that premium.
 

Swa

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I have asked ISPs well known and small privately just for a hint at how much it costs and they always just say it's very expensive or is mor expensive that transit to London ect never was figures posted publicly unless I missed them by the looks of it then.

Also Openserves response:
I don't understand that. Operserve's IPC costs are common knowledge and not determined on a contractual basis. It's the same for everyone. Seems like someone not knowing their arse from their elbow BS'ing again to avoid the question that was posed to them. Not that it's really a valid one as other providers may be better with IPC but rape on the port side.
 

Sapphiron

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Close to where I work, Openserve and Vumatel were rolling out fibre across the road from each-other.

Both started trenching in March. Vumatel had their first clients connected in April.

Openserve is still trenching and having the re-dig the same trenches in the rain. It must be a great to get a fat cat contract from Openserve

Maybe that's why Openserve is more expensive
 

RonSwanson

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“Openserve, as is the case with other licensees, operates in a regulated environment and conducts business from a wholesale perspective on a contractual basis with ISPs and other clients and, as such, deems it inappropriate, and in fact unlawful, to discuss costs and pricing publicly,” the company said.
Whoo-whoo big secret
 

Gallderhen

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BS. Vumatel is R649 on cisp for 10/2 where Openserve is R499 for 10/5. If anything they are more competitive where it matters and don't artificially limit upload speeds so you have to take a more expensive package. I never thought I'd say this just like I never thought I'd say it about the mobile operators but our fibre providers are behaving even worse than Telkom with their price gouging.

The only one I can find that beats them is Mitchell's fibre.

On the lowest package, yes. On every other package you pay more for less benefit compared to Vuma.

-G-
 

system32

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The network said its NNI also provides support for both copper and fibre-based broadband, unlike other broadband access infrastructure providers which deploy and maintain fibre access only.
Seems Openserve are subsidising the copper network with high costs on fibre.
If this is the case, they will always be more expensive.

Vumatel started in 2014.
In terms of size, I suspect that (Vumatel+Fibrehoods+SADV+DFA+Octotel)=Remgro have more fiber customers than Openserve.
Vumatel+Fibrehoods+SADV+DFA+Octotel has done more in 5 years than Openserve did

My free tip to Openserve - stop whining, stop cross subsidising and stop ripping off the public.
You had your chance and messed it up,

1563484085012.png
World's smallest violin just for Openserve
 

Icemanbrfc

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Seems Openserve are subsidising the copper network with high costs on fibre.
If this is the case, they will always be more expensive.

Vumatel started in 2014.
In terms of size, I suspect that (Vumatel+Fibrehoods+SADV+DFA+Octotel)=Remgro have more fiber customers than Openserve.
Vumatel+Fibrehoods+SADV+DFA+Octotel has done more in 5 years than Openserve did

My free tip to Openserve - stop whining, stop cross subsidising and stop ripping off the public.
You had your chance and messed it up,

View attachment 685777
World's smallest violin just for Openserve
It's ironic, because for all these years, Openserve/Telkom have been the only player in the Adsl space. Now the wheels are turning, and they don't know what is hitting them. It's a lesson to them, that unless you start to listen to customers, you are not going to get much further.

You can't provide Fibre to customers, yet you won't service their Adsl infrastructure. Instead you want to force them over to LTE, yet your LTE pricing and data offering is nowhere close to what Adsl customers were getting.
 

GhostSixFour

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I don't get this... The whole idea about moving away from Adsl, was better quality of connection, but most importantly, the cost being cheaper. Yet, I notice that on say a 20/5 package, some of these providers are charging as much as what we pay for a 20meg Adsl line which includes line rental.

Now I don't really understand that. It's like they know people are desperate for Fibre, and would pay a premium, so let's charge them that premium.
Almost like they need to recoup their investment in setting up a new network, trenching new lines, training staff in different tech, using expensive tech that gets stolen, expand the network further seeing as every article about fibre is marred by people moaning that they still don't have it.

Whereas the ADSL infrastructure was built ages ago.
 

wingnut771

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Almost like they need to recoup their investment in setting up a new network, trenching new lines, training staff in different tech, using expensive tech that gets stolen, expand the network further seeing as every article about fibre is marred by people moaning that they still don't have it.

Whereas the ADSL infrastructure was built ages ago.
and been milking it for ages too.
 

mister

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“Telkom’s NNI is the cost of IPC, which costs around about R120 per Mb (no matter how many Mb you purchase), which equates to R12,000 per gig.”
:oops:
 
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