ITNT: R1 per GB capped

[Glordit]

That I can tell you now already - it won't. R1 is below sustainable levels at the moment...by quite a bit.

I can understand their business practice completely, 100 people at R1 as opposed to 10 at R10, but at some point their system is going to meet a saturation point and it's going to be detrimental to everyone. Of course unless they can produce an almost infinite amount of bandwidth via IS.

[Cronus086]

I can understand their business practice completely, 100 people at R1 as opposed to 10 at R10, but at some point their system is going to meet a saturation point and it's going to be detrimental to everyone. Of course unless they can produce an almost infinite amount of bandwidth via IS.

Have to agree, everything seems fantastic until more and more people start joining. At some point their going to reach a bottleneck and their quality is going to go down. I'll rather wait until i can be 100% sure i won't get shafted in the end.

[brendanvb]

Yeah I'm also going to see how things go over the months. It just seems to good to be true, but I really hope they can sustain it. The market definitely needs some strong competition. Now if only someone could find a way to cut Telkom out of the picture...

[HavocXphere]

I can understand their business practice completely, 100 people at R1 as opposed to 10 at R10

Doesn't work like that - mainly because 100 people use 10x more capacity than 10 people, but as per your example don't bring in 10x as much cash. The constraint is cash flow, not a bandwidth saturation point (you can always pick up the phone and order more intertubes...if you have cash).

But yes your conclusion is essentially correct - something has got to give. My crystal ball says it'll hold for about 2 months though before price/performance shifts dramatically.

[B1nary]

If they don't really sell any uncapped accounts maybe it will be sustainable, the bandwidth used by uncapped users probably outways capped by far.

[HavocXphere]

They do sell uncappeds...the pricing is a bit more normal though

[Glordit]

Doesn't work like that - mainly because 100 people use 10x more capacity than 10 people, but as per your example don't bring in 10x as much cash. The constraint is cash flow, not a bandwidth saturation point (you can always pick up the phone and order more intertubes...if you have cash).

But yes your conclusion is essentially correct - something has got to give. My crystal ball says it'll hold for about 2 months though before price/performance shifts dramatically.

I apologise, for not giving more clarity. the Rand per customer value was supposed to be a crude example of more people paying less can equate to more profits than a smaller amount paying more. It had nothing to do with the network, which would obviously strain more under more people.

[HavocXphere]

I apologise, for not giving more clarity. the Rand per customer value was supposed to be a crude example of more people paying less can equate to more profits than a smaller amount paying more. It had nothing to do with the network, which would obviously strain more under more people.

All good...this stuff gets evil complicated.

Anyway...for reference...I rate the current break even for heavily contended data is somewhere round the 1.5 mark.

[Ser_Bunnylot]

Hang on... something weird is going on. Can anyone else still top up at R1 per GB?

Damn. The MyBB thread is going crazy. I really hope ITNT has just had a system glitch because if the promo has ended then this is officially the weirdest scam ever.

http://mybroadband.co.za/vb/showthre...eedback/page13

Oh well. Still got 25GB of good data I feel bad for posting this now...

[AlienTaker]

i jsut need to know it's only the once off's that are rand per gig right because as soon as you register i see there is a montly option of R60 for 10Gb i'm confused now