Not all Fibre prices are created equally.
In most cases, there’s a lot of reading between the lines that need to happen to get the real price of Fibre for businesses.
Price and service differ from ISP to ISP. What may appear to be a good deal, is not always the case.
This article acts as a guide as to what influences business Fibre prices, which should be higher than residential prices, for the sake of reliability and speed.
When mobile phones first hit South Africa (not that long ago), only the elite could afford them, but it didn’t take long before everyone could get one.
Demand drives price. So the more businesses that turn to Fibre, the lower the price becomes.
South Africa’s data costs remain among the highest worldwide, although according to World Wide Worx, there is a huge increase in the number of internet users. This is of course, as a result of the government’s initiative which has a goal to connect 22 million South Africans by 2020. And their choice of connection is Fibre.
The more companies start seeing the benefits of Fibre to the business, the more that number will increase too, and currently, there is a push amongst providers, to offer business Fibre. This will result in a drop in Fibre prices, just as demand dropped the price of cell phones.
Fibre optic infrastructure
Fibre is undoubtedly the best choice for internet connection, but the problem right now is that not all businesses can get it because Fibre coverage is very much dependent on location.
This makes business Fibre pricier than it should be, but that won’t be the case forever…
Currently, metropolitan areas have up to 67.7% coverage, while surrounding areas have about 32.3% (this does not include rural areas which would be even less). (Source: ECN)
The good news though, is that the government is pushing for connectivity and Fibre optic is the chosen solution.
While Government has good goals, the Fibre optic roll-out is a costly business. This cost would be absorbed by the companies who own the infrastructure, who will more than likely ramp up their monthly prices in order to recover the cost.
You’ve got to watch ISP’s.
To keep business Fibre prices down, they often include fast download speeds (for movie streaming, loading websites like Facebook and browsing) and slower upload speeds (usually for the purposes of creating and sending content out). This is done for both Fibre to the Home and Business.
In addition, if you own a home business, you may think you’re getting a good deal, but residential connections may be throttled. Find out how some major ISPs shape their packages. An ISP may advertise the download speed and not the upload speed, so you’ve got to watch for that.
Business Fibre prices, however, increase when speed is uncontended and synchronous, as in the case of BitCo’s business Fibre packages. What this means is that both download and upload speeds remain the same, making the connection more reliable and the speed, consistent.
The other way that speed influences price is how fast the line is. The faster the speed, the more expensive it becomes.