what is the difference between lowering prices and doubling speed? For new contracts, that is a lower price for the same product. And people who could afford XXX$ will probably keep on paying that same figure and enjoy a higher speed. $ per bit will then also be lower, which is the definition for lower prices.
rgds, Reinier Battenberg Director Mountbatten Ltd. +256 782 801 749 www.mountbatten.net Be a professional website builder: www.easysites.ug On Monday 14 September 2009 13:30:26 McTim wrote: > http://www.theeastafrican.co.ke/business/-/2560/657300/-/5hfuqgz/-/index.ht >ml > > Better deals beckon as ISPs benefit from cuts > By ESTHER NAKKAZI > Posted Monday, September 14 2009 at 00:00 > > The arrival of high-speed Internet in Uganda has finally been matched > by price reductions to Internet service providers. > > By last week, some ISPs were purchasing capacity at $650-$700 per > Mbps, a sharp drop from the $2,000 for the same quantity of bandwidth > from satellite. > But this price is for short-term contracts. > > For clients who signed long term contracts of up to 20 years, like > Infocom, the price is much lower at $150 per Mbps. > > Infocom is the sole capacity reseller for Seacom and Uganda Telecom. > > Infocom chief executive Hans Haerdtle said the 20-year contracts > involve an indefeasible right of use — a contract agreement between > operators of a submarine communications cable or a fibre optic network > and a client who is allowed the resale rights. > > Internet users are optimistic that as more ISPs connect to Seacom the > price will go down for customers who are currently experiencing high > speeds but at previous high rates. > > According to Mountbatten Ltd director Reinier Battenberg, once ISPs > sign up with Seacom, the competition would be similar to the telecoms > war for customers, which would see prices go down. > > "We are waiting for competition. After that, it will just be a matter > of time before prices are slashed," said Battenberg. > > Seacom is a privately funded broadband submarine cable that will > connect communication carriers in South and East Africa to global > networks via India and Europe. > > We have started migrating our customers to fibre. The price will not > change but we shall double the connection speed," said Mark Kaheru, > Uganda Telecom public relations manager. > > This is the trend with all companies that have migrated their > customers to fibre so far. > > "We have been on broadband fibre connection for a month now. The > speeds have gone from 64/64 to 512/512 which is sustained for 24 hours > in a week with limited outages," said Simon Vass technical manager > E-Tech Uganda Ltd, also a customer of Infocom. > > --------------------------------------------------------------------------- >----------------------------- > > Seriously tho, prices are not going to fall anytime soon (if at all). > The revenue stream is just too juicy! _______________________________________________ LUG mailing list [email protected] http://kym.net/mailman/listinfo/lug %LUG is generously hosted by INFOCOM http://www.infocom.co.ug/ The above comments and data are owned by whoever posted them (including attachments if any). The List's Host is not responsible for them in any way. ---------------------------------------
