Cheaper broadband on the cards for SA

I have a queezy feeling in my gut, that ISPs will collude in as far as pricing is concerned to pocket the extra profits from reduced cost of connectivity, then after a while drop prices.
 
Yup, and then we going to have Infraco screw everybody untill there's no competition... and then what do you think's going to happen? They know the private sector will perform, but if it does... all that money's not going to them... :mad: I think Infraco is a bad bad idea...
 
Look in SA we are being milked for broadband. A lot of ISPs are making money where they wouldn't be able to in overseas markets. While its all good for consumers to have cheaper broadband, its not good for ISPs and those whose business models depend upon payment per gig.

So I see a day when Telkom wakes up and their conscience catches up to them, but the ISPs try and keep a payment model in place for usage, to keep the revenues coming in. Then the ISPs will become the new scum.
 
yada yada from Goverment. We probably see 50cent reduction, and they will sell it to us as a "MASSIVE" price drop!
 
This is based on the assumption that if these costs are addressed, Tier 2 (the local metropolitan area network and last mile) connectivity providers will quickly pass this on to the market as a result of competitive pressure.
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I suspect not.

Currently wholesale broadband price known to be R56/GB but we pay upward of R69/GB. That's a +-25% markup just for reselling and not providing much service. And there is very little overhead, so I suspect, resellers won't easily pass anything on; or maybe a little.
 
emmanuel said:
I suspect not.

Currently wholesale broadband price known to be R56/GB but we pay upward of R69/GB. That's a +-25% markup just for reselling and not providing much service. And there is very little overhead, so I suspect, resellers won't easily pass anything on; or maybe a little.
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I guess some of it goes for support and some for profit... they have to make a living you know.

I believe the ISP's are now where estate agents were a year ago. Rapidly expanding... but for every boom, there is a bust. As prices come down, so will margins. And if there isn't a massive uptake, some will go bust.
 
I think the Minister of the DoC is playing spin the bottle with her male counterparts in other departments. Mr Irwin was unlucky and now seems to be the one off on a wild goose chase...

All talk ad zero outcome.
 
This is all just more talk.is just as bad as this single lane crap on the highway. h o l - high occupy lane ( :confused: )
 
jetpacman said:
So I see a day when Telkom wakes up and their conscience catches up to them, but the ISPs try and keep a payment model in place for usage, to keep the revenues coming in. Then the ISPs will become the new scum.
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Telkom? conscience? they have a conscience?

um..... I see pigs flying, I see pink elephants, but I will never see Telkom wake up, its against company policy. Chances are we wont have any electricity to run our computers anyway. but at least we will have the gautrain.
 
How many times will we all have to cry: "It's not the bandwidth cost, it's the charge for the damnable line!" Yeah, bandwidth charges are high, but they're the lesser evil.

There is only one solution to South Africa's telecommunications problems: first, remove all the monopoly-protecting restrictions and licensing requirements. Then, let anyone install international lines, be they satellite links, submarine cables or some kippie writing packets to disks and shipping them across the water. (Never underestimate the bandwidth of a truck full of disks!) Lastly, let anyone operate the "last mile."

At the moment, Telkom has exclusive control over all three! (Yes, even the legislation aspects: they have cronies, you know!)
 
korval said:
as eltherza says...
"Eskom cant even provide power, let alone bandwidth."
That is very true, there is plenty of bandwidth in the power grid, as in Broadband over power lines (BPL) - But if they cant even solve the power load issues, then how on earth will they manage this?

check out http://en.wikipedia.org/wiki/Power_line_communication#Internet_access_.28Broadband_over_powerlines.2C_BPL.29
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I don't think they are talking about BPL, but rather Eskom selling their core backbone network, which was controlled by Eskom Telecoms and now those assets will be acquired by Infraco.

Another institution that could provide broadband, is the Post Office. They have a very serious backbone for their network.
 
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