The true cost of ADSL bandwidth

I am no expert at this sort of thing. Now I understand. Thanks good article.
 
The next aspect of the service is international bandwidth, which typically includes international transit costs and carrying bandwidth from the international cable’s point-of-presence (POP) to the service provider’s POP. This cost is in the range of R 8 000 to R 10 000 per Mbps per month. Local IP transit incurs a further cost of around R 5 000 per Mbps per month.
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Can't Neotel help with this, now that they have that new cable?
 
whatever

the government is a bunch of crooks, therefor, anyone else can be a crook at leisure . . .
 
Great article! :)

Only cutting telkom's heart out...will reduce costs...Only Infraco can make the prices drop significantly...

Hurry up and start up Infraco, we are waiting to use you.
 
I still want to know how they can sell local bandwidth so cheaply, yet charge an arm and a leg for international.

This article hasn't explained that at all!
 
What is forgotten is the ADSL Rental, which has a hidden cost factor... can you guess what it is? Think Cellphone, that's right, its the ' Free Modem ' - Its a whole new world when you work out the game
 
Yeah but isn't that on a 1:1 contention ratio? Whats the industry norm? 10:1? so that brings the cost down to R4.80~R7.20 per gb?
 
JustinB said:
Yeah but isn't that on a 1:1 contention ratio? Whats the industry norm? 10:1? so that brings the cost down to R4.80~R7.20 per gb?
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Contention ratios have no bearing on these "calculate the absolute maximum you can download and divide the cost of the bandwidth by it" exercises. You can't use contention ratios to magically eek more out of a line than its maximum, constantly-being-used capacity.
 
o well, any old excuse will do not to lower the cost.
 
local & international bandwidth costs and general service overheads can be as high as R 30 000 per Mbps per month for a low bandwidth solution. For a high end solution using a 126 Mbps IPC service the cost comes down significantly – in the range of R 16 000 per Mbps per month.
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So, give us more and it will cost us less. Um .. that's what we've been saying from day one.

IPC Cost = R 3 000 per Mb/s per month. [TELKOM]
International Bandwidth = R8 000 per Mb/s per month. [UNDERSEA CABLE + AGREEMENTS ON THAT SIDE]
Local IP Transit = R 5 000 per Mbps per month. [TELKOM/whomever]

To me it looks like the 2 figures are on-par : R8000 for the international bit, and R8000 for the local bit per Mbps per month.

So, it now costs the same for local traffic as it does for traffic on an 18 000 km cable + international landing points + agreements on that side. Go figure. :confused:
 
Many ISPs rely mainly on breakage – where a user does not use his full monthly allowance – to ensure profit at the end of the month.
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BULL S***
not worth reading any further, the article is just going to inflame and enrage.
 
I must call BULL****.

There are two ISPs (that I know off) who will sell me 30 GB of local only bandwidth for R 130. Ether they are both making MASSIVE losses on these products, or the article is missing some VERY crucial information.

Quick calc:

IP Connect: R 3000 / 300 GB (capacity of a 1 Mbps line) = R 10 per Gig
Local Transit: R 5000 / 300 GB = R 16.67 per Gig

Total Cost = R 26.67 per Gig

or R 800 per 30 GB.

There are no "catches" with these products. They are both full speed, all hours products.
 
What are the contention ratios? 20? 30? they resell the bandwidth many times, to businesses during the day and consumers after hours....if you look at like this the only thing they can't resell is actual GB's but this is where seacom comes in or supposed to.
tka the 48 or 70 ish that you guys worked on and divide that by 16 subscribers then you get the real cost...

i might be wrong who knows....
 
So we've been lied to for 8 years.

@56&*%^% South Africa is pissing me off now...
 
Drunkard #1 said:
I must call BULL****.

There are two ISPs (that I know off) who will sell me 30 GB of local only bandwidth for R 130. Ether they are both making MASSIVE losses on these products, or the article is missing some VERY crucial information.

Quick calc:

IP Connect: R 3000 / 300 GB (capacity of a 1 Mbps line) = R 10 per Gig
Local Transit: R 5000 / 300 GB = R 16.67 per Gig

Total Cost = R 26.67 per Gig

or R 800 per 30 GB.

There are no "catches" with these products. They are both full speed, all hours products.
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Now add the ADSL line rental and contention ratio's to the picture. The price you see is not the true cost.
 
davemc said:
Now add the ADSL line rental and contention ratio's to the picture. The price you see is not the true cost.
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But if they can give local bandwidth at that kind of price then why cant international bandwidth be sold at a similar price.
 
davemc said:
Now add the ADSL line rental and contention ratio's to the picture. The price you see is not the true cost.
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The line rental is irrelevant, as it doesn't affect the ISP's cost or profit. It is paid by the user directly to Telkom (in this case), so it is intentionally omitted from my calculation.

There seems to be a lot of confusion about contention. Contention applies to the "BANDWIDTH" of a line. A 1 Mbps line can be sold many, many times over, as it is unlikely that all users will use the line at the same time (it's a statistical calculation). On the other hand, a GB can only be sold once. It requires a specific amount of "bandwidth" AND time, so a line is only capable of throughputing a fixed number of GBs per month. Once a lines "bandwidth" has been expressed as a capacity per month, contention is no longer applicable.

Edit: Oh FFS, Contention does NOT affect these calculations.
 
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