There have been major developments in the broadband internet space in South Africa in 2010. Several major ISPs have started offering so-called “uncapped broadband” at surprisingly affordable rates. The immediate astonishment and disbelief at the low prices was soon replaced by sulking and disbelief at the application of “fair usage policies” that restricts the speed…
Since my recent post outlining how the distraction Eskom’s proposed higher charges distracted us from more important considerations such as their underlying efficiency, new evidence has emerged validating another point from my original post, Mumbling in the Dark. The DA has released a confidential report outlining how Eskom has been selling heavily discounted electricity, sometimes…
In a previous post, Mumbling in the Dark, I argued that too much attention was being paid to Eskom’s proposed increased charges and too little at 5 separate points, the first being their actual cost of production. It seems that NERSA has been looking at this and has discovered some areas where Eskom was incorrectly…
The safety rules and rigorous enforcement of these regulations damages the profitability of the entire industry – just not in the way you might think. Regulations and Big Bank Buildings Why have banks historically had impressive marble-slathered floors and columns, high ceilings and ornate, heavy front doors? Would you really deposit your salary and savings…
I blogged recently about why I park on the fourth floor of the Cape Town airport parkade, and also about understanding and utilising unlikely but extreme events to your advantage. There is actually a link between these two posts. Parking on the top floor does have a cost. It takes longer to drive up all…
Insurance and gambling have much in common. They both involve uncertainty and money and the rational consumer will, on average, lose money through the interaction. Both business models involve leveraging the tail of probability distributions (one nasty and one nice). The tail of a distribution includes the very bad and very good possible outcomes, that…
Interconnect fees and the reasons for their reduction are possibly the most misunderstood “big” news story over the last twelve months. The hype and hoopla around this topic is fueled by our feelings as consumers of being charged too much big big monopoly companies. So I should start by saying that I’m not saying that…
I always park on the fourth floor. Whenever I leave my car at the Cape Town airport, I always leave it on the fourth floor, right at the top of the parkade. I think you should too, but I hope you don’t. The police park several blue and white cars and grizzly blue-lighted bakkies on…
