ADSL price cuts may be coming

Fialkov also warned that Telkom’s decision to give massive price cuts to small clients, and very small cuts to large clients, will disrupt the market
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How is that a bad thing?
The more competition the better it is for the consumer.
 
Openweb CEO Keoma Wright said they will be using the majority of the reduction to increase the quality of their network.
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In what way? Hiring competent staff? Not sharing accounts?
 
Openweb CEO Dr Keoma Wright said they will be using the majority of the reduction to increase the quality of their network.
“We will be ordering a large amount of bandwidth into the network on our Durban, Johannesburg, and Cape Town IPC nodes,” he said. “Once live, clients [-]will[/-] might experience a [-]much improved quality of[/-] service.”
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Fixed
 
It's rather early to get details from the ISPs, these are just general comments. The real changes usually come after the first mover announces 'dramatic new pricing'.

I see Laurie's point about the two steaks, but it doesn't apply to data consumption - users are typically able to consume considerably more data if the pricing is right as examples the world round show
 
He explained that it is like paying 15% more in a restaurant to get two steaks instead of one. Great if you are very hungry, but if you cannot eat two steaks it may be a waste.
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His clear and plain explanation indicates that at least he understands the story. Not so sure about the rest!
 
I'd rather get a better service than a cheaper service.

Poor people that want the "best bang for buck" are the worst thing that could happen to this industry.
 
whatwhat said:
I'd rather get a better service than a cheaper service.

Poor people that want the "best bang for buck" are the worst thing that could happen to this industry.
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+1

PLEASE can we have less shaping and more lenient FUP.
 
whatwhat said:
I'd rather get a better service than a cheaper service.

Poor people that want the "best bang for buck" are the worst thing that could happen to this industry.
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+1

though I doubt this will happen.
 
My cynical mind is wondering if this is some kind of defensive action against FTTH i.e. by making ADSL cheaper ?
 
Chris.Geerdts said:
It's rather early to get details from the ISPs, these are just general comments. The real changes usually come after the first mover announces 'dramatic new pricing'.

I see Laurie's point about the two steaks, but it doesn't apply to data consumption - users are typically able to consume considerably more data if the pricing is right as examples the world round show
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How not? You might have the appetite for two steaks but you have to pay 15% more for them. Not much room for price cuts if ISPs have to pay more unless they give better value packages that cost more or get more customers on board. Can't see the last one as realistic seeing Telkom's adsl subscribers are continually dropping.

Seems Telkom is just screwing everyone around. They don't want to make it cheaper but get more money instead without doing anything to increase the customer base like LLU or naked adsl. I've given up on them and will be waiting for my fibre install instead of for pigs to fly.
 
Swa said:
How not? You might have the appetite for two steaks but you have to pay 15% more for them. Not much room for price cuts if ISPs have to pay more unless they give better value packages that cost more or get more customers on board. Can't see the last one as realistic seeing Telkom's adsl subscribers are continually dropping.

Seems Telkom is just screwing everyone around. They don't want to make it cheaper but get more money instead without doing anything to increase the customer base like LLU or naked adsl. I've given up on them and will be waiting for my fibre install instead of for pigs to fly.
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Paying 15% more for double the capacity means you can take on double the subscribers at your current contention ratio. So more money for the ISP.
 
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