Don't expect huge price drops

ADSL South Africa (Broadband South Africa), 27 April 2009

Don’t expect huge price drops in the tariffs of ISPs when the cost of bandwidth drops with 50% or even more later this year. Most ISPs won’t drop their tariffs but will rather allocate more bandwidth to their broadband subscribers.

The argument of an increasing number of ISPs…

The reason why ADSL South Africa (Broadband South Africa) is now not very confident of a huge price drop in the tariffs of ISPs, is because the cost associated with network maintenance, supporting services, personnel cost, et cetera will stay the same for ISPs. In other words, the cost of bandwidth is not the only cost component to take into consideration form an ISP’s perspective. This is why we shouldn’t expect huge price drops in the tariffs of ISPs. This is the argument of an increasing number of ISPs.

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