Comments on: SA will experience strong Internet growth over the next 5 years says goldstuck

By: justinspratt

justinspratt — Fri, 24 Apr 2009 15:18:24 +0000

great post colin, great worth arthur (as always)… and a good conversation between daniel and arthur (dont be sorry Daniel!)

my 2 rupees worth:

1. Daniel – broadband culture is not the same as e-commerce adoption and more so, the relationship is tenuous at best – they can be mutually exclusive – so agree with Arthur on this one

2. like the Porsche in driveway metaphor – brill

3. Daniel – agree on Telkom point, disgaree on ISP “shunt this counrty” – I work for IS and the reality is that the Telkom costs are an input that everyone has transparency on, ie we cant mark this up. It then leaves the internet service provision – this is cookie-cut stuff now and massively competitive – so not too sure how ISP’s can have unfairly priced? the prohibitive costs come in the Telkom last mile component. Stick to blaming Telkom and your message is well put.

4. Liberalisation / competition points: the govt talks about this but it is merely lip service. They are as culpable as the inert ignoramuses at Telkom. Why? The govt get **MASSIVE** tax flows from the licensing fees (5% on revenue from MNO’s); then you add VAT and then corporate taxes of the license holders (read: monopolists, Telkom, Vodacom, MTN)

5. I agree with Daniel on Seacom emphatically and have discussed it with the likes of Arthur and Paul previously. More importantly, you missed the lack of in country backhaul infrastructure, long term contracts with other carriers on international backhaul, etc.

Thanks for the intellectual parrying guys. was interesting. viva la broadband

By: Daniel

Daniel — Sat, 06 Dec 2008 08:05:26 +0000

Not at all, If you feel I’m trying to rubbish you, then I’ve obviously not made myself clear enough.

What I am saying is that I don’t think a new undersea cable will change things in the next 5 years. Telkom still throttles the local loop, Neotel will make a small dent, but 5 years is a little aggressive even for them.

We both agree that Internet access here is a luxury. Just because there is a new pipe, doesn’t mean Telkom/Neotel will automatically decide a larger cap is a must. The track record has been to throttle the connection and charge as much as you possibly can. A bigger pipe just means that, a bigger revenue source.

Europe is now pushing caps onto most users, and this is a continent with more bandwidth than anything else, so why would SA be any different in throttling the average user?

Anyway… sorry I spoke

By: Art2

Art2 — Fri, 05 Dec 2008 14:23:52 +0000

So what is it exactly you are saying? That I am lying because I am counting more people connecting to small businesses’ ADSL connections? That I am talking nonsense because I dare to suggest that a new undersea cable will increase our bandwidth dramatically? That I am smoking something if I believe that a 40-fold increase in bandwidth will result in increased caps? The reality is that we are probably on the same side of the argument. In fact, it is part of our ongoing argument that the Internet is still treated as a luxury in this country – doled out like fine wine instead of being supplied almost freely like water when that is how it ought to be. We continually argue that bandwidth is too expensive. But it IS going to come down, however much you may wish to focus only on the negatives.
On broadband culture, you respond: “How? I see such a small amount of e-commerce being offered in this country still. There are a handful of sites which are local, the rest being outside of the border.” I have no idea what you are trying to say. That broadband culture us defined by e-commerce?? This study is a study of connectivity trends, not of e-commerce, and the trends show clearly that dial-up is being dumped in favour of broadband, and that people have woken up to the fact that dial-up is even more expensive than broadband. But we are NOT saying broadband is cheap, however much you are trying to rubbish us.
And tour comments about more bandwidth are so entirely irrelevant to what we are saying, it sounds like you are rolling out a well-worn diatribe. We are on record as declaring that a 1GB cap is an insult on a 4Mbps connection, and that caps in fact are holding back the Internet and knowledge economy in South Africa. Our report ism looking at the impact of the new undersea cable next yar, and it MUST result in increased caps. Are you saying that everything will remain exactly as it is now?
Look at the findings in context please Daniel, and don’t piss on everyone just because you find the bathroom dirty.

By: Daniel

Daniel — Fri, 05 Dec 2008 07:31:10 +0000

Sorry, but what a load of bollocks!!

This country has a very unique situation where Internet access is deemed a luxury lifestyle accessory. Telkom, and the ISP’s, have done everything in their power to shunt this country to the back of the queue when it comes to the net.

I was paying 20US for a 2mb connection in Cambodia, yes CAMBODIA, and yet here I’m paying nearly 2500 rand for a 512k line which is constantly slow and frustrating.

The trends are also a little warped, and this is coming from someone who has spent the past 10 years implementing, securing and using broadband technology.

Trend 5: Broadband culture has taken hold in SA
How? I see such a small amount of e-commerce being offered in this country still. There are a handful of sites which are local, the rest being outside of the border.

Trend 16: More Bandwidth and increased caps!
Say what??? caps are the main reason why this country is still behind. Let’s see, you can have a 4mb line, but a 1gb cap. That’s the same as giving a person a Porsche and allowing them to use it on the driveway.

Until Telkom stop strangling the country with their archaic methods, Internet access will be a luxury tool only available to middle-class families.

By: Paul Jacobson

Paul Jacobson — Thu, 04 Dec 2008 17:53:52 +0000

Thanks for the link. I completely forgot about the press release when I published my post.