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Thread: Seacom has already affected broadband pricing

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    Site Caretaker Dave A's Avatar
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    Seacom has already affected broadband pricing

    Just the threat of landing a 15 000km fibre optic undersea cable on South Africa's shores has forced down broadband prices 90%, according to Seacom's president Brian Herlihy.

    He says that when Seacom announced its intention to launch the $600-million undersea cable project, operators in South Africa were pricing broadband at R8 000 per megabit per month and that prices have now dropped as low as R800 per megabit per month. "We have created competition before we even landed the cable," says Herlihy.

    But Seacom plans to halve these prices again when it enters the market in June 2009 with a price of R435 per megabit per month.

    "With only eight months to go before the system is ready for service, Seacom remains set to become the first cable to connect East and Southern Africa to the rest of the world with plentiful and inexpensive bandwidth," says Herlihy.

    He says a simple calculation shows that South Africa needs about 50 gigabits of international capacity to service the one million broadband subscribers in the country, but has only 10 gigabits.

    "International capacity has been choking the data market in Africa for years now," says Herlihy.

    Initially Seacom will deliver 80 gigabits of international capacity through its cable but can meet more demand easily because the cable has a potential capacity of 1,28 terabits (1 280 gigabits).
    full story from M&G here
    The trouble with opportunity is it normally comes dressed up as work.

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    Diamond Member wynn's Avatar
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    Aah!! but as has been mentioned before, who is laying glass to my door?

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    Site Caretaker Dave A's Avatar
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    Neotel with any luck. Seacom had to partner with them for the SA landing rights because of our restrictive legislation anyway.
    The trouble with opportunity is it normally comes dressed up as work.

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    Silver Member Loman's Avatar
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    That is all well for those in big cities, but what about us poor country folk that only barely get dial up?

    At the moment i've got a edge modem on contract since we have no 3G, but i can only use it about 20% of the time and even then when my download reaches 15kb/s i get cut off. Thats why i also have internet through my telkom line but its terrible.

    It would seem satellite is the only way but it way too expensive for me.

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by Loman View Post
    At the moment i've got a edge modem on contract since we have no 3G, but i can only use it about 20% of the time and even then when my download reaches 15kb/s i get cut off. Thats why i also have internet through my telkom line but its terrible.
    Ouch!

    Did you notice we've got a lite skin to help people on dialup or slow connection speeds? Check out the dropdown options in the bottom bar on the left. It trims a bit off each page load.
    The trouble with opportunity is it normally comes dressed up as work.

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    Silver Member Loman's Avatar
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    I have to stop myself from checking iburst and neotel's coverage map daily. I'll can't wait to get broadband but i'll be content with anything better than what i have now.
    The man who smiles when things go wrong has thought of someone to blame it on. - Robert Bloch

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    Quote Originally Posted by Dave A View Post
    He says that when Seacom announced its intention to launch the $600-million undersea cable project, operators in South Africa were pricing broadband at R8 000 per megabit per month and that prices have now dropped as low as R800 per megabit per month. "We have created competition before we even landed the cable," says Herlihy.
    I think it is a bit rich stating that they were the cause for the dropping of the prices. It is a pity that even though the broadband pricing for wholesalers has dropped to 10% of what it used to be, we have yet to fully feel the effects of this as endusers.

    It is pointless making statements such as this when we the consumers are still subjected to some of the most expensive broadband prices worldwide.

    The pampering of Telkom by the DoC and ICASA has done little to help reduce the cost of telecommunications and there is no indication of that changing anytime soon even with the ruling against the DoC allowing VANS to self-provide and the emerging SNO, Neotel. ICASA has thwarted this victory by delaying (once again) the issuing of licenses to the VANS.

    A very sorry state of affairs to say the least.

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    Dave A (10-Jan-09)

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    Quote Originally Posted by Loman View Post
    I have to stop myself from checking iburst and neotel's coverage map daily. I'll can't wait to get broadband but i'll be content with anything better than what i have now.

    I would not rely on iBurst rolling out and extending their network anytime soon. Vodacom are in the process of taking over iBurst and it looks like they have put a moratorium on future expansion to concentrate on entrenching the HSDPA and WIMAX products (WIMAX license through their shareholding in iBurst/WBS coincidentally).

    Neotel is concentarting on the FBU areas (as was to be expected) and once again it seems the rural and outlying areas are going to be overlooked (as they were when cellphone coverage was first rolled out).

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    Gold Member garthu's Avatar
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    Neotel is OK... but just OK. The promise of 1m/s or 800k/s (i think it was) is far off. get excited when i get i get speeds of 100k/s (not often) more often around 30-40k/s. Still better than what you have Loman, maybe, but be very cautious if the signal strengh is medium or low. When i use it in low signal i get frustrated and generally give up with it - although the calls are ok. I gave up iburst for neotel which i didn't regret. Something else is to wifi it there is not network socket so have to network through a pc to wi/fi. WOW does it get tempremental then! (but then i'm not a pc wiz either) Much as i hate to openly admit, still love a good fashioned adsl 512 or 1m connection - as long as it doesn't need repair!
    Garth

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    Silver Member Loman's Avatar
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    Quote Originally Posted by BonaFide View Post
    Neotel is concentarting on the FBU areas (as was to be expected) and once again it seems the rural and outlying areas are going to be overlooked (as they were when cellphone coverage was first rolled out).
    Noooooo, why does this keep happening to me? I can't go through that again.
    I should probably get the fudge out of the "rural and outlaying areas", its so depressing.
    The man who smiles when things go wrong has thought of someone to blame it on. - Robert Bloch

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