Let's take ownership of the Solution

pmbellis

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I refer to: http://mybroadband.co.za/news/Telecoms/8810.html

Telecoms snafu all our own fault

Why, if lower telecoms costs are so important, have we been unable to do anything about it in the past five years?

I like the "our own fault" and "we have been unable" ... :mad:

1.) "We" to the general reader of this board, are consumers of Broadband services.
2.) "We" to the writer of the article seems to be South Africa as a whole.

Points to remember:
A.) South Africa (as a whole) cares not a penny for Broadband ... they are more worried about the price of bread and milk and taxi fares.
B.) The government of the country is not voted in by us (Broadband users), but by South Africa (as a whole).

Ergo, the government will never be concerned about our vote, or our issues, neither will any body chosen by the government, nor any companies whos profits depend upon government goodwill.

Practically every time there is an article on this board, there are immediately large numbers of members who react by saying “they should …” and decry the attitude and actions of the state and state-controlled bodies (in this I include so-called “watchdog” bodies & parastatals). It is time that we (SA broadband users) start realizing that there are certain things which do not work, or, at best, have VERY limited impact. Things like:
i.) Whining about the situation
- No, I do NOT think we should take shoddy service & daylight robbery lying down, all I’m saying, is that so far, “consumer action” has had so little impact as to be imperceptible.
- Yes, we should still complain, and complain loudly, often and ferociously. BUT we must do it where it hurts … in the “OPEN” arena. When you complain here, then ALSO: send an e-mail to Parliament, leave a voicemail on Zuma’s landline, call up your local MP, write a letter to your LOCAL newspaper, post it on your NON-Broadband SIGs, etc, etc, etc. Here you’re just preaching to the choir.​
ii.) Demanding lower prices from ISP, etc. They will react only as it fits their business model, not as a result of your “demand”

Personally, I am hoping for drastically reduced prices with SEACOM coming online, but I’m not really expecting it, business models in South Africa being what they are.

What CAN we do?

Well, for one, as a pure consumer, switch to a better deal THE MOMENT it is offered AND, tell the ISP you are leaving WHY. This is the ONLY incentive/threat that works on businesses. If we all jumped ship the moment the competitor offered .005% less, then they WOULD compete on price. However, when someone does drop by 1% or 2 %, the reaction here is “so what, when are we going to see really good prices?”

But, here’s a second (very rough, very off-the-cuff) idea … it’ll need a lot of work from tech/business and legal savvy people here to make it work.

Let US (myBroadband members) form an ISP (proper company, properly set up), with the initial charter being something along these lines:
1.) We will ALWAYS source our bandwidth from the cheapest source available, and will never sign any lock-in contracts.
2.) We will ALWAYS publish (on this site) exactly what all the input costs to the company are (Capital, Running, Bandwith, etc)
3.) We will ALWAYS cost our resale price at “Cost-Plus” (Business savvy people to determine the Plus factor)
4.) We will ALWAYS sell our bandwidth at a flat rate (i.e. if you use 100Mb, or 1000Gb, it will cost you the same per Gb or Mb/s if you want uncapped)
5.) We will ALWAYS give HOME consumers preferential treatment over BUSINESS
6.) Have the company OWNED by all it’s users (Like a Building Society, or an Agricultural Co-Op) …
7.) Have the company DIRECTED by industry savvy experts (rpm, dom, etc … people who’ve already proven they care & are competent)​

Now, if you are REALLY concerned/cared about our broadband situation here in SA, then you can react in 2 possible ways:
1.) Give an alternative, practical, implementable (by US) suggestion
2.) Give constructive criticism of the above idea. If you see a problem, point it out & provide a solution, or a pointer to a solution

If you just say “it won’t work”, without giving a constructive reason why, then you earn the right to be ignored.

A practical issue from a consumer's point fo view, is that if 3.) and 4.) above are strictly adhered to, prices will fluctuate quite a bit. But they should always ON AVERAGE remain way below the rest of the industry.

I challenge you ... put up, or shut up.

Now, I hereby, publically, COMMIT that I will, legally, on paper, bind myself to contribute R250-00 / month for the capital/initial running costs of the company for a period of 2 years. If we ALL commit to what we can, how much financial leverage can such a start up achieve?
 
Let US (myBroadband members) form an ISP (proper company, properly set up

I like this idea very much, and cannot see in principle why it should not work. I do not have enough technical knowledge to become a part of the "engine" of such a firm, but will also be willing to support it by means of subscribing to its ISP offering, should it be able to offer me better than current market offerings from ISP's.

I'll be watching this thread closely...
 
Sorry, would love to but I had to sign a non-disclosure agreement at my place of employ!
 
Let me play devil's advocate:

I'm not convinced this will lead to substantial savings for its members if it operates like most ISPs, simply reselling IS and SAIX products.

It has to be large enough to purchase its own bandwidth pipe. SEACOM is selling its smallest pipes, 155MB/s, for about $4.5m apiece, which will give you about 10 years of bandwidth. If you are not reselling SAIX or IS, you will also need to be able to connect all your clients to Neotel's Midrand POP (where SEACOM will terminate) and the only way to do this for ADSL clients will be through Telkom's IPConnect product, which Telkom will charge an arm and a leg for and only if they feel like providing it.

If there was a fair playing field and access to the local loop, this idea would work fine. But if there was a fair playing field and access to the local loop, this idea wouldn't need to work, because natural competition would have done the job for us.

What we really need is a strong regulator with enough backbone to break the incumbents' stranglehold on the industry.

A scheme like this is just going end up as a humongous mess. You will need an I-ECNS licence, and good luck getting the ownership structure past ICASA. And good luck with the credit control when half the members decide they just don't feel like paying any more, because some commercial venture has found a way to do it cheaper.

It's nice idea, but I think a lot more homework needs to be done in terms of the mechanics, the business plan, and the legal and regulatory status of the vehicle.

It might be a far better idea to engage with an existing ISP for a block member discount. If a group of consumers negotiate en-mass, and get treated like a coherent business group, rather than as individuals, the potential discount could be substantial.
 
Let me play devil's advocate:

I'm not convinced this will lead to substantial savings for its members if it operates like most ISPs, simply reselling IS and SAIX products.

It has to be large enough to purchase its own bandwidth pipe. SEACOM is selling its smallest pipes, 155MB/s, for about $4.5m apiece, which will give you about 10 years of bandwidth. If you are not reselling SAIX or IS, you will also need to be able to connect all your clients to Neotel's Midrand POP (where SEACOM will terminate) and the only way to do this for ADSL clients will be through Telkom's IPConnect product, which Telkom will charge an arm and a leg for and only if they feel like providing it.

If there was a fair playing field and access to the local loop, this idea would work fine. But if there was a fair playing field and access to the local loop, this idea wouldn't need to work, because natural competition would have done the job for us.

What we really need is a strong regulator with enough backbone to break the incumbents' stranglehold on the industry.

A scheme like this is just going end up as a humongous mess. You will need an I-ECNS licence, and good luck getting the ownership structure past ICASA. And good luck with the credit control when half the members decide they just don't feel like paying any more, because some commercial venture has found a way to do it cheaper.

It's nice idea, but I think a lot more homework needs to be done in terms of the mechanics, the business plan, and the legal and regulatory status of the vehicle.

It might be a far better idea to engage with an existing ISP for a block member discount. If a group of consumers negotiate en-mass, and get treated like a coherent business group, rather than as individuals, the potential discount could be substantial.

I agree that getting together and pooling resources is the way to purchase the bulk discount needed.

Right now, by 150 people getting together, we can get the 15% discount from IS.

...Or one person can get it, hunting 149 others for the first 6 six months, by which time IS requires the minimum amount of payment to start.

The "group" can then negotiate the best deals, as the prices drop and membership grows.

It's really as simple as getting together and actually starting it.

This thread, mine and a few others here, are signs of the tide turning.

Good.

PS. Last week, I let those that were interested in starting the Non Profit ISP, know that we can start with the 10 members so far, if we do not get to 20 by today, but I would really like to have more.

If anyone else is interested, please IM me.

I will begin the registration paperwork next week and arrange that all members recieve a copy.

I will set up the secure chatroom where we can begin discussing the way we would like to run the NPO.
 
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That's the thing. It's the way out of the tyranny of telkom.

It should be able to be done, by people joining one main WUG association.

All the various WUGs' members can then decide to pay a monthly fee to also have access to the wireless relays for international traffic.
 
Squash that idea for now...

Unfortunately, the WUGs are not currently permitted to carry an Internet Signal. The moment they do, they run into all kinds of licensing and spectrum issues which would, in short, shut them down... the license costs alone would be exorbitant, if ICASA even approved such a deal in the first place. They have flown under the radar so far by staying firmly in the private category.
 
What does the required fibre cable cost, and what does the equipment needed, to link to Seacom, cost on average?

Is it possible to legally run your own cable to Seacom and then resell to "members" of a group or company?
 
"Group" vs Company

Hi Lightscribe ... didn't know about your initiative, otherwise I've have responded to it by now.

There are numerous smaller ISPs who are pure resellers, and have no infrastructure of their own. One just has to browse the net a bit to see that.

I do not support the idea for a non-profit organization, simply because, in my experience all such organizations end up navel gazing and forget what their core business is, this is why I suggest a cost plus model. As long as it's perfectly transparent (ALL details published regularly), and the "plus" factor is reasonable, I think a lot of people would go for it.

I floated an idea, and am willing to put my bucks where my mouth is, but I have neither the tech savvy, the business acumen, nor the legal expertise to be one of the staff or directors. This is why I suggested people like rpm, dom, etc.

An idea like this needs to be kicked about, torn apart, and eventually built back together after ALL the factors have been taken into account. The problem is, I personally couldn't claim to know what 10% of those factors are ... there is no simplistic solution.
1.) What are the legal constraints upon an ISP?
2.) What are the technical constraints?
3.) What are the financial constraints?
4.) ??? something I haven't thought about???​

A few things I can confidently predict.
1.) If transparency is adhered to from inception onwards, there will be an enormous amount of goodwill to draw upon.
2.) If the company ownership is "open" (Building Society style), then the users/clients will have a stake in the success of the business, and will be prepared to accept hiccups in service or priceing which they wouldn't otherwise have done (and there WILL be hiccips)
3.) Advertising would be mostly by word of mouth (well, of keyboard ...), and would be self-propogating.
 
Peter,

How about registering mybroadband (Pty) Ltd. as a first step. I checked with CIPRO, looks like it has not been taken yet. A public company ((pty) ltd. type) needs to have audited annual financial statements by law, which should satisfy the need for transparency. It could also be listed on the JSE, to raise some public money which might be an idea.

The second step as I see it would be to get members to join the firm. A maximum of 50 is allowed. These members should ideally comprise of technical, legal and financial expertees who could all contribute towards the development of a sound business plan.

Having said that, my concern lies with how to get it from Seacom into homes, The WUG idea sounds about the best, as you hopefully want to be completely independent of the Telkoms and other providers. But that equals HUGE capital outlay, which might be a problem.

Another question I am asking myself is how could such a firm capitalise on the 2010 Soccer World Cup? Maybe a cheap VOIP system for tourists to call home? Extend the WUG (if thats the idea) to all stadiums so that peeps could log in via cellphones with WiFi to browse and call via VOIP?

I'm thinking aloud here....but its 02h45 am....

Cheers Rudi
 
Hi Lightscribe ... didn't know about your initiative, otherwise I've have responded to it by now.

There are numerous smaller ISPs who are pure resellers, and have no infrastructure of their own. One just has to browse the net a bit to see that.

I do not support the idea for a non-profit organization, simply because, in my experience all such organizations end up navel gazing and forget what their core business is, this is why I suggest a cost plus model. As long as it's perfectly transparent (ALL details published regularly), and the "plus" factor is reasonable, I think a lot of people would go for it.

I floated an idea, and am willing to put my bucks where my mouth is, but I have neither the tech savvy, the business acumen, nor the legal expertise to be one of the staff or directors. This is why I suggested people like rpm, dom, etc.

An idea like this needs to be kicked about, torn apart, and eventually built back together after ALL the factors have been taken into account. The problem is, I personally couldn't claim to know what 10% of those factors are ... there is no simplistic solution.
1.) What are the legal constraints upon an ISP?
2.) What are the technical constraints?
3.) What are the financial constraints?
4.) ??? something I haven't thought about???​

A few things I can confidently predict.
1.) If transparency is adhered to from inception onwards, there will be an enormous amount of goodwill to draw upon.
2.) If the company ownership is "open" (Building Society style), then the users/clients will have a stake in the success of the business, and will be prepared to accept hiccups in service or priceing which they wouldn't otherwise have done (and there WILL be hiccips)
3.) Advertising would be mostly by word of mouth (well, of keyboard ...), and would be self-propogating.

Hi Peter,

I agree that there is much to do.

I will however continue with the NPO. It's something that cannot die. It can only be handed over to another similar NPO.

I have experience with the creation of a NPO. I have a family member that owns an ISP. I have just invested 42k in his ISP.

I take this whole issue as seriously as any other ISP owner.

The more of us, removing ourselves from the finite pool of "virtual" ISP clients , the better.

Whether we do it as one massive group, or many smaller groups, clubs, companies or NPOs, does not really matter.

My goal is enlighten people as to the ways that we can take action against unrealistic bandwidth pricing.

If many others follow suit, great. If not, no problem. The NPO ISP and the various other solutions like yours, will still grow if they remain commited to the goal of constantly seeking cheaper ways to access the internet.

It is common for people to use quite a few different ISPs, for various needs, in the specific way that they use the web.

I intend on concentrating near term, on cheaper international bandwidth only.

Advertising will play a major role for me. Weekly in Sunday papers, for ever, is a must. You need to be in people's subconcious. Who do you think of when you see a stray animal in need...Who should they think of when they want the cheapest uncapped bandwidth...

Long term, finding a solution to get out from the yoke of telkom's local loop ownership.
 
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