{"id":31505,"date":"2013-02-10T23:32:23","date_gmt":"2013-02-10T21:32:23","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=31505"},"modified":"2013-02-11T08:51:21","modified_gmt":"2013-02-11T06:51:21","slug":"making-money-from-uncapped-adsl-2","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/internet\/31505\/making-money-from-uncapped-adsl-2\/","title":{"rendered":"How ISPs make money from uncapped ADSL"},"content":{"rendered":"

Numerous Internet Service Providers (ISPs) cut their uncapped ADSL prices, following Telkom<\/a>\u2019s decision to slash its uncapped ADSL rates on 1 February 2013. To remain profitable with the lower rates required innovative solutions from the ISPs.<\/p>\n

ADSL service providers informed MyBroadband that they did not receive wholesale price cuts on IPC, national transit or international bandwidth to support the lower uncapped prices. This means that they had to find other ways to save costs.<\/p>\n

MWEB<\/a> ISP CEO Derek Hershaw<\/a> said that the two lower-priced uncapped products they introduced differ from their existing uncapped premium products in that it is a throttled service aimed at users with moderate consumption behaviour.<\/p>\n

\u201cWe provision less capacity for it on our network, and we have priced it accordingly,\u201d said Hershaw.<\/p>\n

Openweb<\/a> CEO Keoma Wright<\/a> said that they had to \u201cfine tune\u201d their existing uncapped ADSL packages to provide the best throughput for the best price.<\/p>\n

\"Tim<\/a>

Tim Wyatt-Gunning<\/p><\/div>\n

Web Africa<\/a> CEO Tim Wyatt-Gunning<\/a> said that they have been planning their ADSL move to Internet Solutions for some time; lower costs was one of the determining factors for the move.<\/p>\n

\u201cWe were planning to cut prices anyway but Telkom’s surprise move just prompted us to cut quicker and possibly deeper than we might have at this stage,\u201d said Wyatt-Gunning.<\/p>\n

Wyatt-Gunning added that there has been no corresponding drop in IPC or ADSL line rental charges as yet.<\/p>\n

\u201cWe are getting squeezed on margin in what we hope is the short term because a return to the days of blatant anti-competitive behaviour [by Telkom] is just too much to contemplate,\u201d said the Web Africa CEO.<\/p>\n

\"Laurie<\/a>

Laurie Fialkov<\/p><\/div>\n

Cybersmart<\/a> CEO Laurie Fialkov<\/a> explained that big investments in their network over the last few years made it possible for them to drop prices.<\/p>\n

\u201cWe are splitting our IPC into 3 POPs \u2013 Durban, Johannesburg and Cape Town – which brings some cost savings that we are passing on to our subscribers,\u201d said Fialkov.<\/p>\n

Other cost saving initiatives which will save Cybersmart money in future include investing in their own data centre, paying off their international bandwidth IRUs and saving electricity by using solar power.<\/p>\n

Despite all these initiatives, the Cybersmart CEO said that they are still taking a big knock in revenue and profit with the price cuts.<\/p>\n

\u201cThis large knock will reduce as the cost savings mentioned kick in, but even then we will still be taking a hit on the bottom line,\u201d said Fialkov.<\/p>\n

More on Uncapped ADSL<\/h3>\n

Business uncapped ADSL prices compared<\/strong><\/a><\/p>\n

MWEB Business launches Uncapped ADSL Lite<\/strong><\/a><\/p>\n

MWEB Business cuts uncapped ADSL prices<\/strong><\/a><\/p>\n

Uncapped ADSL price comparison: data-only and bundles<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

ISPs explain what made it possible for them to reduce their uncapped ADSL prices to compete against Telkom<\/p>\n","protected":false},"author":2,"featured_media":30762,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9882],"tags":[79,435,2179,26,1865,437,38,1864,1556,953],"class_list":["post-31505","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-internet","tag-adsl","tag-cybersmart","tag-derek-hershaw","tag-headline","tag-keoma-wright","tag-laurie-fialkov","tag-mweb","tag-openweb","tag-tim-wyatt-gunning","tag-web-africa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/31505","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=31505"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/31505\/revisions"}],"predecessor-version":[{"id":31507,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/31505\/revisions\/31507"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/30762"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=31505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=31505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=31505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}