ICASA: Your feedback needed

rpm

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Hi folks

I am currently preparing my ICASA presentation and would like to make certain that it is representative of our members’ feelings. It will be great if you can indicate what you feel I should focus on, like line rental, general price, market competition, SLA, unshaped etc. I will try to incorporate as many of your ideas as possible in this presentation.

Please give your views. I am certain Antowan and a few other speakers will also appreciate the feedback.

Regards,

RPM
 
International comparisons, trends and investment.
The opportunities we CAN have if we compete internationally - the growth of SMME's and the empowerment of the new middle class.
 
Costs and cap, ask for atleast 15-30GB (wothout charging 15-30 times the price ofcource).

Good luck, hope it goes well!
 
You dont need to _focus_ on this, but since telkom is planning to ask "Why Us?":

1. They make a huge profit on just about ALL intl bandwidth of their "competition"
2. They make a huge profit on data links between their "competition" (peering etc)
3. They kill off ADSL competition by boosting their bandwidth profit with ADSL line rental profits.
4. I'm sure there was more.

How does Telkom expect the "competition" to be cheaper?
 
Cost is my main issue. I would like to see this managed by removing Telkoms dedicated control of international links and last mile usage. VAN's must be able to provide their own infrastructure if they want to.
 
If I wanted to come and listen to the hearing, would this be possible ?

Remeber is they bring up the peer ro peer story etc, just mention that Itunes is legal and songs can be downloaded as well as napster on the go etc.

So not all p2p is illegal as many distro's and ISO and shared in a p2p enviroment as well as torrents.

As for Skype usage, it is legal ? so they cannot complain that we use that.

The fact that the prices are so inflated (line rental) no other ISP can make money from reselling their accounts nor from providing ADSL themselfs.
 
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OH!

4. Telkom is making huge profit on us trying to phone the competition's help desk, and also making huge profit on the competition's help desk phone lines, etc.

Surely that explains why everybody is "picking on telkom"?

Why does telkom mention what they are going to say at the hearings? Are they stupid or cunning?
 
Ok I'm too busy to write this up coherently atm but here are some jumbled thoughts for you to pick from:

-Telkom's "don’t compare us to the 1st world" must be shot down in flames: Mauritius, Egypt, India, ... all have much cheaper charges. MaD has lots of good data on his site regarding other "3rd world" broadband costs.

-Break the SAT3 monopoly. Local competition means buggerall if Telkom can dictate international bandwidth pricing. ICASA must nationalize SAT3 or give ISPs access at wholesale prices.

-Telkom does NOT need to break the ADSL connection every 24 hours to measure usage and force an IP address change. Usage is measured all over the world without dropping the line. This is simply an anti-competitive action to protect their ridiculously overprices leased line business.

-It is anticompetitive to force ADSL users to pay for an analogue telephone line. What’s the point of legalizing VOIP when I am forced to pay Telkom for a telephone line anyway!

-The competition commission found Telkom guilty of anticompetitive behavior. Recommended Telkom be fined 10% of their turnover. However due to the endless legal red tape surrounding this, the CC's punitive recommendations mean nothing in reality. Telkom can drag it out for years. OFCOM (UKs ICASA) can fine BT almost immediately and directly force them to change their business practices NOW. Why isn’t ICASA doing this?

-ICASA must legalize private Wifi networks that cross public boundaries.

-ICASA should be protecting us against Telkoms monopolistic abuses. Instead they threaten to curtain Telkom and then immediately backdown when Telkom complains.

-Stop f*****g around and let the SNO launch already you idiots!

-Stop tying to regulate a perfect society into being. You're wasting your time. Let the market decide things with minimal interference from ICASA.

-"Managed liberalization" is merely a convenience phrase for continuining to use Telkom to generate income for the government.

-There is a direct correlation between broadband pricing and broadband take-up ... look the UK for heavens sake.

-We live in the information age. If South Africans are locked out of the information economy by artificially inflated pricing we will remain in the 20th century for ever.

-ZA has a massive poverty problem. Affordable access to information is a very cost effective means of promoting economic development. People can empower themselves if given access to information they can learn from. Trying to get people out of poverty by simply doling out government money doesn’t work. This is amply proved by the problem with "yob culture" in the UK.

-What’s more important? Telkom making R5 billion profit per year or South Africa unlocking R50 billion per year through affordable communications.

-Free and affordable communications is immensely beneficial in strengthening a democratic society. (Look at what is happening in Zimbabwe for a contrasting situation.)

- The telecoms industry in ZA should work more like the taxi industry: Minimal regulation, massive competition ... look at the results ... incredibly affordable transport that meets peoples REAL needs. In other words, obese chair-bound beurocrats in ICASA have no idea what consumers really need or want. The minimally regulated free market is the ONLY mechanism of adapting to consumers CONTINUALLY changing needs.

-School learners and university students should BY LAW be guaranteed access to the internet (if only to an educational intranet) at a cost of R50 per month.

-We have to compete against the whole world to survive. We have no hope of doing this while our government insists on stifling our telecoms industry through over regulation and preservation of mono/duo/tripolies.
 
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-Show ICASA exactly what percentage of the total cost of a customers ADSL bill goes into Telkoms pockets:

e.g. 512k line:
Line rental: R600 pm
ISP portion to Telkom: R230 of a typical R250 3G shaped account.

So ... R830 of R850 goes into Telkoms pockets: 97.6%

That is obscene!

-Following on the above point. Look at this graph:

http://www.internet.org.za/costs.html

The problems are bloody obvious!
(a) Telkom have been abusing their monopoly to gain a greater and greater share of the pie.
(b) Look at the Telkom cost graph after 2001! The gradient increases sharply ... What happened? ICASA's f****g about regarding the SNO gave Telkom (and their foreign backers) free reign to rape the ZA public at will. Telkom realized that was the last opportunity to loot our coffers and, boy, did they make full use of that opportunity! Edit: At the same time telecoms costs were plummeting everywhere else!
 
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ICASA claims to be their to protect us!

Well let’s look at ICASA's record!

In 1997 Telkom's monopoly was extended for another 5 years ostensibly to provide lines for the previously disadvantaged. They had to install something like 2 million lines.

Well ... fast forward to now. Only something like 200000 of those lines are currently in use! Tens of billions of installation capital development up in smoke!

The cherry on the cake was when the government could barely manage to sell Telkom for a pittance in 2004. (Post dot com bubble Telecoms bust.)

____________________

Let me describe what would have happened if ICASA hadn't bungled this by their usual zeal for over regulation:

Telkom monopoly ended in late nineties. Telkom could have been listed for LITERALLY 10X what the gov got in 2004. This was the peak of the dot com boom. Foreign Telecoms would have poured tens of billions into upgrading ZA telecoms infrastructure. Granted, when the dot come bubble burst their share prices would have collapsed ... but hey who gives a damn. Investment is risky! Their capital investment could not be taken back out of ZA. Once the infrastructure is paid for and installed ... it stays installed.

Bottom line: Our infrastructure would have been upgraded "for free" courtesy of foreign investors, the gov would have gained an absolute bonanza from Telkoms sale. That money could have been invested into ZA in so many ways.

Broadband penetration would be 10X what it is now.

Compare this scenario to the current situation ... it's depressing.

Anyway with cockups of that magnitude what makes ICASA arrogant enough to think they can just legislate all our problems away! Look at your own track record you fools!
 
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Hi rpm,

You could point out that some of the goals of the Telecommunications Act were:

"The primary object of this Act is to provide for the regulation and control of telecommunication matters in the public interest, and for that purpose to-

a) promote the universal and affordable provision of telecommunication services;

b) promote the provision of a wide range of telecommunication services in the interest of the economic growth and development of the Republic;

f) promote the development of telecommunication services which are responsive to the needs of users and consumers;

m) protect the interests of telecommunications users and consumers;

o) promote small, medium and micro-enterprises within the telecommunications industry."

This is the direct wording of the 1996 Telecoms Act, available at: http://www.polity.org.za/html/govdocs/legislation/1996/act96-103.html.

You could point out how the huge price of broadband connections is negating these objectives.


Here are a few direct quotes from the LINK centre (at Wits university) from their 2004 ICT Sector Performance Review:

"South Africa’s “e-preparedness” is still lagging behind many other lower-middle-income
countries, with the number of South African broadband subscribers in 2004 -- specifically ADSL – lagging far behind countries at similar stages of economic development, e.g. Argentina, Mexico and Chile. At the beginning of 2004, South Africa’s broadband penetration as a percentage of residential lines sat at 0,008%, significantly behind the average of 1,96% in other comparable countries in the lower-middle-income index. The continued decline of residential lines during 2004 and the jump in ADSL subscriptions in anticipation of the February 2005 liberalisation will adjust this figure upwards, but unless there is a quantum leap in the number of broadband connections South Africa will continue to lag significantly behind global broadband trends."

"In comparison to other lower-middle-income countries, South Africa does not have a
broadband market to speak of. Lack of competition and Telkom’s fear of cannibalising its ISDN service offerings has made the incumbent slow to introduce vital new technologies. ADSL was only introduced in anticipation of competition in 2002, though it is understood to have been deployable by Telkom well before then. With just over 36 000 Telkom ADSL customers signed up since 2002, compared to an average of just under 3 million in other middle-income countries, South Africa performs poorly in this vital indicator of preparedness for e-commerce (ITU, 2003). The effects of Telkom’s aggressive marketing of ISDN can be seen in the strong growth of the ISDN market. Between 2002 and 2004, and with significant price reductions in the last year, there has been an average growth of over 40% to a total ISDN subscriber base of 656 000. Despite a considerably higher growth rate in the ADSL market than in the ISDN market over the past six months, ADSL subscriber numbers, working off a much smaller base, are still only expected to sit at about 75 000 in March 2005, compared to the expected ISDN subscriber total of just under 750 000."

"In terms of broadband prices as a percentage of monthly income, South Africa is listed as less favourable than other middle-income countries such as Argentina (3,98%), Mexico (4,56%) and Sri Lanka (4,81%). Out of the 61 countries listed, South Africa is at 48th position (meaning its broadband access is more costly than in 47 other countries) with broadband prices making up 7,95% of monthly income."

This is an excellent research paper which might give you a few good solid facts on how SA's broadband market compares with its peers in other middle-income countries. It is available at: http://link.wits.ac.za/papers/tspr2004.pdf.

Hope this helps.

Debbie
 
The more open per say service if not free to schools, charity etc would make it available to all. Then to the consumer at an affordable price, also force ISP to provide no bandwidth shaping or capping. Then also afford another provider to also provide such services.
 
Oh yeah, and...

I agree with hArth - School learners, students and teachers should be able to have broadband internet at affordable rates (like R80 a month, with a cap even). The internet is the best thing to happen to education since the frigging Guttenberg printing press was invented. I may be wrong, but isn't it true that the govt devotes, in the budget, more money to education than any other sector? Forcing cheaper internet will go a long way in advancing education in SA.

rpm, if you need facts or studies to cite, please pm or email me ([email protected]). I have masses of information, not very much on broadband, but if you are in need then just let me know what you are looking for and I will send you studies/academic papers etc if I can help.
 
WickedWeasel said:
If I wanted to come and listen to the hearing, would this be possible ?
Hi Wickedweasel

It is certainly possible, and in fact encouraged. ICASA asked for a well attended hearing, but we know that work related responsibilities will make it difficult for most members. Having said this, if you have a chance please pop in…should be interesting at least!

Regards,

RPM
 
Boy, there is so much to be said and a lot of it has been covered above. But I would like the following questions to be asked and answered:

1. WHY is there an ADSL line rental charge of R680 (now R600) when we're already paying for our telephone line rental.

2. WHY is local traffic included with international traffic.

3. WHY do they insist on being so short-sited by continually wanting to compare us to "other" third world countries. Is it because they are too embarrassed to compare themselves to "other" first world countries because they know their product underperforms and is way over priced?

Prime minister Meles Zenawi believes information technology has the power to counteract poverty.

If the Ethiopian prime minister knows this then wtf is up with the South African government not forcing Telkom into the first world?

I really feel that direct questions should be asked and answers demanded from Telkom.

Good luck RPM.
 
One thing that I would like to know:
The cap of 3gig. Why not ONLY have it on downloaded international access? If the cap is moved, I do believe the usage of ADSL for local business, will inject HUGE business into local traffic...

cyber7
 
Can you also add that there are many, many potensial ADSL subscribers out there, but because of cost and other limitations, these potensial subscribers, me being one of them, cannot afford to subscribe to ADSL or any other broadband offering. If cost was not a factor, I think many people would subscribe immidiately.
 
I basically want to know why local bandwidth is counted towards the cap - 3GB intl would be fine for my needs because I want to play more local gaming but I can't :(
 
HARTH has said it in a nutshell!

Reading through hArTH's posts, one line stood out head and shoulders above all the rest, and sums it all up for me:

"- The telecoms industry in ZA should work more like the taxi industry: Minimal regulation, massive competition ... look at the results"

This is *exactly* what we need: SAT3 taken away from Telkom (it belongs to the people of South Africa -- WE paid for it), and the market opened up completely.
 
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