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South Africans in Cape Town and Johannesburg Pay Much More For Internet Usage Than New Yorkers (qz.com)

South Africa may have some of the world's cheapest cities to live in, but using the internet in Cape Town and Johannesburg is surprisingly expensive by global standards. From a report: South Africans living in the country's two major cities spend more on their monthly internet costs than people living in New York, Tokyo, and even the perennially expensive Zurich, according to a report by Deutsche Bank. When comparing life in the global financial capitals, most other things, from rent to the cost of a cappuccino, were far cheaper in Johannesburg and Cape Town, making the cost of getting online even more of a shock to the pocket. Out of 50 cities surveyed, Joburgers spent the second most on monthly internet, beaten only by oil-rich Dubai. The amount shelled out by Capetonians ranked seventh behind Dublin, San Francisco, and Auckland and Wellington in New Zealand, according to the report, which compared daily prices and living standards of cities around the world.

63 comments

  1. Expensive internet and no water... by Anonymous Coward · · Score: 0

    Sounds like the antithesis of paradise to me.

    1. Re: Expensive internet and no water... by Anonymous Coward · · Score: 0

      Well this was after the par-tide. During it was whites who ran South Africa.

    2. Re: Expensive internet and no water... by Anonymous Coward · · Score: 0

      So the good ole days?

  2. And why is that? by Anonymous Coward · · Score: 0

    Better just to enjoy that cappuccino than hanging out on teh intart00bs, eh.

  3. That's not saying much! by b0s0z0ku · · Score: 3, Interesting

    Internet in NYC is cheap, like $42/mo for an unbundled 100mb Verizon connection. Many other parts of the US pay much more, or require bundling with cable/phone, for the same service.

    1. Re:That's not saying much! by Anonymous Coward · · Score: 0

      Which is hardly surprising, because New York is one of the major internet hubs of the world. South Africa is far away from everything else that is relevant on the internet, so of course internet access is going to be expensive there. But there's no excuse for San Francisco coming in near the top of the list for expensive internet.

    2. Re:That's not saying much! by ole_timer · · Score: 1

      in Virginia I got Verizon fios 300 for $100

      --
      nothing to see here - move along
    3. Re:That's not saying much! by Mashiki · · Score: 1

      You pay more for internet in Toronto then you do in NYC too. Figure it's around $152/mo($115USD) for 100Mbps service there. It's also $37/mo for 5/1Mbps with a 25GB cap, that's cable, basic DSL 5/1 is roughly $50/mo same city no less. The only way you get cheaper internet is going through a third-party(TPIA's) who leases the last mile from Bell or Rogers. TPIA's like teksavvy, electronic box, MTL, and so on are roughly half the cost of what's being charged, but the companies who lease the last line absolutely love to claim there's no availability and completely fuck people around. So the only 100% sure way to get on those TPIA's is to get bell/rogers, then transfer your account over. Shit's been back in forth with the CRTC(like FCC), for a couple of years now with them claiming no card slots/no signups due to high latency issues.

      --
      Om, nomnomnom...
    4. Re:That's not saying much! by Anonymous Coward · · Score: 0

      Internet in NYC is cheap, like $42/mo for an unbundled 100mb Verizon connection. Many other parts of the US pay much more, or require bundling with cable/phone, for the same service.

      Thats not really cheap, I pay 29/month for uncapped 300mb/s

  4. Unsurprising by ebrandsberg · · Score: 3, Insightful

    Switzerland has a 90% penetration rate of internet users, while South Africa has a 50% rate. Next, South Africa is connected to the rest of the world by relatively expensive internet connections on a per-user basis due to the position in the globe and usage. This results in a higher cost per user when actual expenses are accounted for as compared with a location like NYC or Zurich. This is simple economics.

    1. Re:Unsurprising by polar+red · · Score: 1

      It isn't just number of users that count. It's also population density, average wage (of the provider's personnel). I guess hardware should cost about the same.

      --
      Yes, I'm left. You have a problem with that?
    2. Re:Unsurprising by Anonymous Coward · · Score: 2, Interesting

      That's completely ignoring the fact that Internet access has been monopolised by the government-run telecommunications company Telkom for decades, and they've been milking people hard for all that time. Thankfully the introduction of fibre internet has seen a massive decrease in costs, since finally different providers are being allowed - I'm now getting 40Mbps fibre for the same price I was paying for 4Mbps copper - but it's still far from cheap.

    3. Re: Unsurprising by Anonymous Coward · · Score: 0

      40Mbps fiber? Sounds like shitty fiber to me.

    4. Re: Unsurprising by smi.james.th · · Score: 1

      1Gbps fibre is available from most providers but if you don't need it, why pay for it? 40 Mbps is cheaper. Most people have gladly jumped over to fibre when it's become available (though coverage areas are still small and limited to main cities), because then you can say goodbye to the aforementioned Telkom and their aging copper infrastructure.

      FWIW, our internet certainly isn't the cheapest in the world, but for the past couple of years it's reached the point where it's not *that* expensive anymore. Gone are the days where we'd have to pay a week's wages for 3 GB per month at 384 kbps over copper ADSL...

      --
      One thing I know, and that is that I am ignorant...
    5. Re:Unsurprising by ebrandsberg · · Score: 1

      All things considered, it would be more expensive simply due to the base infrastructure costs. I'm going to say how MUCH more it should be--it could be that the base costs, fully amortized across users could account for a $.10USD difference a month. Or it could be subsidized and you should be paying $100/month more. That would require numbers that I don't think anybody but the ISP has.

    6. Re: Unsurprising by Kjella · · Score: 1

      40Mbps fiber? Sounds like shitty fiber to me.

      Probably because they have real traffic costs. Take a look at the map, South Africa is south of Sahara and almost all international traffic is a long trip by undersea cable. And since most people there understand English they consume a lot of media that originate from the US/Europe which is far, far away. If you have fiber the "last mile" is no longer a problem, you have a dedicated 1 Gbps+ capable link if somebody installs the right box in each end. In fact, I doubt there's anything less than 100 Mbps capable nodes.

      --
      Live today, because you never know what tomorrow brings
  5. Reasons Why? by Only+Time+Will+Tell · · Score: 1

    Are there reasons why the cost would be more in South Africa or Dublin? I could understand the argument in that they may not be as much demand (subscribers) in SA to spread the costs across, but Dublin? Installs should be relatively easy (no major geographic barriers).

    1. Re:Reasons Why? by Anonymous Coward · · Score: 0

      People like money. Internet providers doubly so.

    2. Re:Reasons Why? by Gavagai80 · · Score: 2

      Dublin is on an island. The ocean seems like a pretty big geographic barrier, doesn't it?

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      This space intentionally left blank
    3. Re:Reasons Why? by Green+Mountain+Bot · · Score: 1

      50 miles of underwater cable is a whole lot less of a barrier than a bunch of sovereign nations, a huge ass desert, an assortment of mountain ranges, and a Mediterranean crossing.

    4. Re:Reasons Why? by AHuxley · · Score: 2

      History. South Africa had a set of different needs when building its communications networks over decades.
      The POTS network had to be able to call for police, ambulance, fire service.
      Let people make voice calls. Track people making calls quickly. Allow for rapid tracking of the location a call was made given data on one or both phone numbers used. The need for voice prints. The need to find any new voice conversation using a set of spoken words.
      The BOSS/National Intelligence Service, Silvermine years.
      South Africa was at war so its telco networks had to be robust and ready to connect but also ready to collect information.
      After the 1990's political changes the internet was the product to connect up to an existing POTS network.
      The politics of giving more people just POTS? Digital networks? New digital networks for everyone? New wireless?
      Budget and how to use new internet technology became political. Who got an advance new network, why and when in any given part of South Africa was political.

      --
      Domestic spying is now "Benign Information Gathering"
    5. Re:Reasons Why? by smi.james.th · · Score: 1

      Our cables going to Europe / the Americas / Asia tend to run in the sea. Telecoms doesn't go over those mountains / deserts / sovereign nations that you mentioned.

      --
      One thing I know, and that is that I am ignorant...
    6. Re:Reasons Why? by Anonymous Coward · · Score: 0

      I live in Dublin and pay ~€50 for 240 mbit broadband. I don't know where they got their figures from for Ireland.

  6. We found it! by burtosis · · Score: 2, Interesting

    A single place where internet costs more than the USA for comparable service does little to help the fact the three American cities on the list are among the most expensive. Americans pay far more for slower internet than the vast majority of the world. The repeal of net neutrality just made overall costs worse, expect to pay even more for services in the future as companies take fast lane fees and pass them back to consumers.

  7. Joburgers by Anonymous Coward · · Score: 0

    Yummy joburgers taste far better.

  8. Want to know the real reason? by slashmydots · · Score: 3, Insightful

    This is going to sound impolite but it's because their government has absolutely no experience governing and has no idea what they're doing. They can't stop crime, inflation, grow food, or do basically anything. It's a complete free for all over there.

    1. Re:Want to know the real reason? by Gavagai80 · · Score: 3, Insightful

      It's not lack of experience, it's too much experience. It's a one party state for the last 24 years, and that's long enough to corrupt any party into outright looting.

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      This space intentionally left blank
    2. Re:Want to know the real reason? by HornWumpus · · Score: 1

      California residents agree!

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    3. Re: Want to know the real reason? by Anonymous Coward · · Score: 0

      Then why do you keep electing the same asshats every election? You dug this ditch, now lay in it.

    4. Re: Want to know the real reason? by HornWumpus · · Score: 1

      'We' don't, that's the granola crew from west of the coast range.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    5. Re:Want to know the real reason? by Ryanrule · · Score: 1

      Yeah with zero experience. They kicked out everyone with knowledge because racism.

    6. Re:Want to know the real reason? by smi.james.th · · Score: 1

      No idea why this is modded insightful. Yes, South Africa has its problems, but point me to the country that doesn't? The crime rates are kind of going down if you squint at the graphs, poverty is reducing (granted not very fast), there's food enough.There are lots of things that can improve but it's not a free-for-all.

      --
      One thing I know, and that is that I am ignorant...
    7. Re: Want to know the real reason? by Anonymous Coward · · Score: 0

      'We' don't, that's the granola crew from west of the coast range.

      Ah OK, so you are the universal arbiter of truth then. If you think something it must be true & 40 million CA residents are just idiots.

      All hail the HornWumpus! If only we could make you our King!

      </sarcasm>

    8. Re: Want to know the real reason? by HornWumpus · · Score: 1

      The fact remains: CA has one party rule and has for long enough that 'outright looting' is SOP.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    9. Re:Want to know the real reason? by thegarbz · · Score: 1

      This is going to sound impolite but it's because their government has absolutely no experience governing and has no idea what they're doing. They can't stop crime, inflation, grow food, or do basically anything. It's a complete free for all over there.

      What's that say about internet in the USA also being horribly expensive?

    10. Re: Want to know the real reason? by Anonymous Coward · · Score: 0

      Broadly speaking it may be true, but as always, things are complicated.

      As a state owned enterprise, Telkom owned all the telecoms infrastructure when it was privatized a few years ago. Instead of building on this and laying fibre, it decided to bring start a mobile telecoms company and compete against the two entrenched cellular companies, Vodacom and MTN.

      Cable theft is extremely rampant and any copper in the ground can be regarded as temporary.

      Good news, however, is that private companies are busy laying fibre, so things are looking up.

  9. South African pays more For Internet than New York by najajomo · · Score: 3, Informative

    Reason being that as part of the deal to allowing Mandela into power, the ANC had to 'liberalize' the South African telecom market. Basically sell it off at bargain basement prices to foreign 'investors', who operate an effective monopoly. For example, the UK company Vodafone and 'Thintana Communications' out of Texas.

  10. Atlanta $110/month 25/5 Mbps by Anonymous Coward · · Score: 0

    Atlanta $110/month 25/5 Mbps Comcast Biz. I'm staring at the bill.

    Called last fall and got a verbal quote for GigE from Comcast for $800 installation and $499/month.

    1. Re:Atlanta $110/month 25/5 Mbps by Anonymous Coward · · Score: 0

      And yet, in a city only 3 hours (but two States) away, I get gigabit up/down for $70/month. 100 MB is $50/month.

      Seems like there may be something going on with you and Comcast, but maybe it's just because you're using a Biz connection?

  11. I'm curious by Hognoxious · · Score: 1

    So how much do South Africans pay for New Yorkers?

    --
    Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  12. CapeBurger by TheStickBoy · · Score: 1

    Listen, on a side note: if someone from Johannesburg is a Joburger then I think it just goes that someone from Capetown should be a Capeburger. It has a nice ring to it.

    1. Re:CapeBurger by smi.james.th · · Score: 1

      The accepted word is Capetonian. ;-)

      --
      One thing I know, and that is that I am ignorant...
    2. Re: CapeBurger by Anonymous Coward · · Score: 0

      What about someone from Hamburg?

    3. Re:CapeBurger by Anonymous Coward · · Score: 0

      Kapenaar is the real name. Only snooty souties call themselves Capetonians.

    4. Re:CapeBurger by Anonymous Coward · · Score: 0

      Listen, on a side note: if someone from Johannesburg is a Joburger then I think it just goes that someone from Capetown should be a Capeburger. It has a nice ring to it.

      This comment made my day: Durburger (Durbanite)

    5. Re: CapeBurger by TheStickBoy · · Score: 1

      HamburgBurger.
      The rule does not discriminate!

    6. Re:CapeBurger by TheStickBoy · · Score: 1

      Well, if we throwing Capetonian into the mix...
      then someone from Durban would be a Durbonian!

    7. Re:CapeBurger by TheStickBoy · · Score: 1

      Durburger is an even better example!
      nice :)

  13. Seriously, who gives a shit? by pablo_max · · Score: 1

    How the fuck is this news?
    When I lived in SoCal, I paid more that twice as much for internet service at half the speed than when I lived in Germany.
    Is that in the news?
    Seriously, what a stupid fucking story.

    1. Re:Seriously, who gives a shit? by Anonymous Coward · · Score: 1

      There's many persons of color in SA so yes it is news.

  14. Prices in France by Anonymous Coward · · Score: 0

    I pay only 10â / month for uncapped 200mb fiber access.
    For 4g it's only 5â for 30gb + unlimited calls.
    There is a real competition between providers,ðY

  15. price you pay for living in criminal world by micahraleigh · · Score: 0

    If the government doesn't go after criminals, companies can charge you through the nose for operating in a dangerous place where most people don't want to set up shop.

    Blame the criminals.

    Blame the soft enforcement of laws.

  16. Re:South African pays more For Internet than New Y by SEE · · Score: 1

    Well, that's an interesting theory that has no resemblance to reality.

    Over here in reality, South Africa's Telekom is over 50% owned by the Republic of South Africa (roughly 40% directly and 11% through the Public Investment Corporation), and no other shareholder holds more than 5%. And specifically, Thintana's minority stake was sold off back in 2011 and Vodafone's minority stake was sold off in 2016.

    So, if the problem in South Africa is a telecom monopoly that exploits customers, the problem isn't foreign investors, it's the state-owned, state-controlled telecom monopoly.

  17. Re:South African pays more For Internet than New Y by Anonymous Coward · · Score: 0

    only till the next saa bailout.

    oh, and it was malaysia telkom that owned the big chunk late 90's on

  18. That's what happens by Anonymous Coward · · Score: 0

    When you want to kill whitey so bad, internet costs more. Inside secret.

  19. IT Admin in South Africa by BuFf0k_SPQA · · Score: 1

    Pricing here is a joke, if we are fair in our comparisons internet access here is even higher than it should be. 10MB ADSL here (which is mostly the best you get) for an uncapped connection will cost you around ZAR 3 500.00 or USD 258.76. For a 20MB Fibre connection to our office we were just quoted USD 2 217.90 for installation and USD 701.62 per month. This is for a 1:1 Uncapped Fibre 20MB with five dedicated IPv4 addresses. Taking into consideration that an average household income here is only about USD 700 per month (And even those figures are unrepresentative) you begin to get a picture of how extremely expensive connectivity is here. Home use internet with extremely stupid shaping and so-called "soft-capping" at about 300GB you are paying about USD 67 per month for an 8MB ADSL connection.

    1. Re:IT Admin in South Africa by Anonymous Coward · · Score: 0

      You should get a new ISP - 200/200mbps Fibre Uncapped is commonly available for R1500-R2000 and 100/100mbps fibre uncapped costs R1000-R1300 depending on the infrastructure provider.