CCC Judgement regarding local bandwidth and section 3.4

Tommygun

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Hi all,
Im afraid I blew it but no surprise there. Well have to take it to the next level...
Here is the judgement I got in a pdf the other day, sorry about the delay. Ill dump the pdf in ftp://ftp.uunet.co.za/pub/incoming/ccc
im just splitting it up due to posting restrictions.

For Complainant
Mr TG Cleghom, in person
For the Respondent
NGD Maritz SC instructed by attorneys Kevin, Moodley & Associates
1 In terms of s 17Cof the ICASA Act 13 of 2000 as amended
2 Judge of the High Court not in active service.
3 By virtue of section 17A(1) of the ICASAAct 2000, as amended.
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JUDGMENT
IWB de Villiers
[1] This is complaint in terms of sI7C(l)(a) of the Act 13 of 2000, as amended that
Telkom is contravening s3.4 of the Regulations (referred to below) inasmuch as local
bandwidth is being subjectedto the cap.
At the hearing of this matter, Mr Maritz, who appeared on behalf of Telkom, raised two
objections in limine. The first was that the Committee lacks authority and jurisdiction to
hear the matter. The objection was, however, withdrawn during the course of
Mr Maritz's argument.
[2] The second objection related to the question whether Telkom had been afforded a
reasonable opportunityto respond to the complaintand the notice setting out the nature of
the alleged non-compliance, in terms of s17C (2)(b) of Act 13 of 2000 ('the Act").
However, during the course of his argument, Mr Maritz asked the Committee not to
decide the point, stating that acceptance of Telkom's written representations at the
hearing of the matter had afforded it a reasonable opportunity to respond to the
complaint. The complainant, who appeared in person did not wish to reply in writing to
Telkom's response in terms of S17C (2)(c) of the Act. Accordingly, the hearing
commenced in regard to the merits of the complaint.
[3] Mr Maritz elucidated Telkom's written response. Thereafter the complainant gave
evidence and was cross-examined by Mr Maritz. Mr Maritz elected not to call any
witnesses and argued that there was no factual dispute between the parties and only a
dispute concerning the correct interpretation of regulation 3.4 of the Regulations
Regarding the Provision of Asymmetrical Digital Subscriber Line (ADSL) Services,
General Notice 1112of 2006 (GovernmentGazetteNo 29141 of 17August 2006).
[4] Regulation 3.4 provides as follows:
"Local bandwidth usage shall not be subject to the cap."
[5] Regulation 3 bears the following heading:
"Consumer Protection Issues".
[6] Regulations 3.1 to 3.3 provide as follows:
"3.1 Subscribers who enlisted for the ADSL service prior to the introduction of the
monthly cap shall have an election to abide by, terminate the contract for the service upon
notice to Telkom, SNO or ISPs or vary the terms and conditions in relation to the
monthly cap.
3.2 Subscribers that have reached the monthly cap shall be allowed to top-up their
monthly cap without the need to purchase a new user account. This provision shall not in
any way be used to prevent subscribers who choose to purchase new accounts once their
monthly cap has been reached from doing so, should they wish to do so.
3.3 Telkom, SNO and ISPs shall inform subscribers, at least on a weekly basis, of their
bandwidth usage until the monthly cap has been reached."
 
final part of judgement

heres the last part
[7] In terms of Regulation 1 the expression "Local Bandwidth usage", unless the context
otherwise indicates, means ''the data that can be transferred from South African
based Internet protocol addresses."
[8] There are no defInitions in the regulations of the expressions "monthly cap" or ''the
cap."
[9] Collins Dictionary of the English Language provides the following relevant meaning
of the noun "cap": "an uppermost surface or part," and of the verb "cap": ''to impose
an upper limit on the level of increase of (a tax, such as rates): rate-capping".
[10] In view of the fact that regulation 3.1 expressly refers to ''the contract for the
service" while regulations 3.2 and 3.3 impliedly refer thereto, one would, in
interpreting the regulations, to my mind, be entitled to have regard to the meaning
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which parties to such contracts have attributed to words like "capping", "cap period"
and "cap". In my view, the regulations envisage that such words, appearing in
contracts between subscribers on the one hand, and Telkom, SNO or ISPs, on the
other would bear the meaning assigned thereto in such contracts.
[11] The parties are agreed that the contract entered into between them electronically
accords with the contents of exhibit "A". On page 4 thereof Telkom's Capping
Policy is sent out under the heading "Access capping details" as follows:
"To offer a fair service for all, Telkom Internet currently monitors and tracks all ADSL
users' online usage which, when added up, constitutes your cap or usage. The usage is
measured in Gigs.
· Capping -Please note we do not monitor what you do or where you go, but
how much traffic you produce in your use of the Internet. Your ADSL usage
is determined by all traffic you generated by a given user name and includes
the upload (sending), download (receiving) as well as network and protocol
overheads. The same process applies to both the shaped and unshaped
service. The accumulated data can be viewed at HTTP:ADSL.telkomsa.net
and is updated each day after the forced network timeouts.
. What's a Gig - In short,
application on the Internet.
MS Word or MS Excel
it is the amount of Bytes or size of a file or
This is approximately 300 songs, 1 500 average
documents or about 10000 E-mails without
attachments.
· Cap period -Capping is determined over a given period, normally a calendar
month. As such, monthly usage is accumulated during the period and reset
according to your service subscription. At the beginning of each period the
usage tracker is reset and any restrictions that might have been imposed would
be lifted.
--- - _..-
-5-
· What is a cap -A cap is the amount of traffic or Gigs per service a subscriber
may use or consume over a given period and is determinedby the product you
have subscribed to initially. An example would be two, three or four Gig.
Capping has no relation to the ADSL speed that you have chosen."
[12] The "monthly cap" referred to in regulations 3.1, 3.2 and 3.3 would, therefore, mean
the amount of traffic or Gigs per service a subscriber may use or consume over a period
of one month and is determined by the product to which the subscriber has subscribed to
initially, e.g. two or four Gigs.
[13] It is also important to note that according to the introductory sentence to the
"Access capping details", Telkom Internet currently monitors and tracks all ADSL users'
online usage which when added up constitutes the subscribers cap or usage, which is
measured in Gigs. The word "all" indicates that not just traffic generated from or to
South African based Internet protocol addresses are monitored and tracked, but also "all
traffic" from or to international protocol addresses.
[14] Mr Maritz submitted that the correct interpretation of regulation 3.4 is that a
subscriber's local bandwidth usage may never be capped, Le. cut off or restricted, but that
both local and international bandwidth may be counted and may accumulate for the
purpose of calculating the total bandwidth usage and thus determining when the cap
(which is to be imposed only in respect of internationalbandwidth usage) is reached.
[15] Mr Cleghorn agreed with Mr Maritz's interpretation of regulation 3.4, but submitted
that Telkom's actions were not in accordance therewith. He asked the Committee for
leave to call witnesses to testify that Telkom has indeed capped local bandwidth usage in
the sense of cutting off or restricting access thereto. However, the Committee refused to
allow Mr Cleghorn to do so since it has never been a part of his complaint that Telkom
had done so, and Telkom has never been afforded a reasonable opportunity to respond to
such an allegation, as intended by s17C(2)(c) of the Act.
-6-
[16] In my view, Mr Maritz's submission in regard to the interpretation of regulation 3.4
is correct. None of the regulations throws any light on the question how the usage which
contributes towards the capped amount of data is to be calculated. If the intention of
ICASA in promulgating regulation 3.4 was to provide that "local bandwidth usage shall
not count towards the cap", it would have been a simple matter to state this in clear and
unambiguous terms. ICASA chose rather to use the words "local bandwidth usage shall
not be subject to the cap."
[17] In Pangbourne Properties Ltd v Gill &Ramsden (Pty) Ltd 1996 (1) SA 1182(A) at
11871to 1188A the Appellate Division held that the phrase "subject to" has no a priori
meaning. The court, referring to the decision in Rennie NO v Gordon and another NNO
1988(1) SA l(A) at 21D-22D, pointed out that in statutory contexts the phrase is often
used to establish what is dominant and what is subordinate.
[18] Applying this meaning to the phrase "subject to" in regulation 3.4, the regulation
means that local bandwidth usage will take precedence over the predetermined cap. The
word "cap" as used by the parties to the contract, exhibit "A", is clearly intended to mean
the "maximum" data traffic permitted" over a given period. Accordingly, the proper
interpretation of regulation 3.4 is that when the total data traffic reaches the amount of the
cap, no limit or restriction may be placed on local bandwidth usage, but all other
bandwidth usage may be limited or restricted. Local bandwidth usage is accordingly
given precedence over the cap, and may continue despite the cap being reached.
[19] Mr Maritz submitted that regulation 3.4 is clearly ambiguous. He suggested that its
other meaning would be that local bandwidth usage should not count towards a cap. On
this interpretation, only data transferred from or to international Internet Protocol
addresses would accumulate for the purpose of calculating the subscriber's bandwidth
usage and thus determining when the cap is reached.
-7 -
[20] It would appear that this is the interpretation of regulation 3.4 which Mr Cleghom
had in mind when he raised his complaint. See his e-mails dated 27 and 28 March 2007,
29 May 2007, 18 June 2007 (items 12, 14, 3 and 2 annexed to the complaint). Although
Mr Cleghorn denied this under cross-examination by Mr Maritz, his denials are
unconvincing.
[21] As indicated, Mr Cleghom no longer supports the interpretation he originally gave to
regulation 3.4 and now supports Mr Maritz's interpretation. If regulation 3.4 is
ambiguous regard should be had to the equities (Hansen v Venter and Another I957( 4)
SA 422(0) at 427 A). In my view, it could lead to injustice to Telkom if local bandwidth
should not count towards the cap. (n effect, the subscriber would in such a case not pay
for his use of local bandwidth. Probably it was this consequence which led Mr Cleghom
to abandon this interpretation.
[22] Accordingly, the complaint is dismissed.
Committee Members. Council/or JCW van Rooyen, N.Ntanjana. and D.Moa/osi
concurred.
LW.B. de ViIliers (Acting Chairperson)
 
Irrespective of the judgement, what you did was set an excellent example to the rest of us. Kudo's to you! :D
 
regulation 3.4 is clearly ambiguous

... allowing Telkom to argue it the way they did. A little bit of a slap on ICASA's wrist, but at least there is now a judgement that supports what we've been saying all along: the ICASA ADSL regulations are ambiguous and unenforcable.

Now, does this compell ICASA to do something about it? I'd wager not, since the judgement has now 'clarified' that particular contentious regulation, and the judgement went in Telkom's direction.

I'm not sure I agree with this part:

In my view, it could lead to injustice to Telkom if local bandwidth should not count towards the cap. (n (sic) effect, the subscriber would in such a case not pay for his use of local bandwidth...

It assumes, again, that the local bandwidth should be free. Aside from being economically infeasible to offer it for free (though I agree that it should be significantly cheaper than it is now), the ICASA regulations does not say that. I agree with Mr Maritz that:

On this interpretation, only data transferred from or to international Internet Protocol addresses would accumulate for the purpose of calculating the subscriber's bandwidth usage and thus determining when the cap is reached.

and I believe this was the intention of the regulation. This does NOT mean it has to be free. Yes, I realise that's not really what everyone would like, but at least as a result of all of this, we have two separate billing structures when it comes to bandwidth. You can buy your local and international bandwidth at separate rates, where local is cheaper (not cheaper enough) than international. How both international and local add up to the same cap is probably no longer relevant...
 
Irrespective of the judgement, what you did was set an excellent example to the rest of us. Kudo's to you! :D

I agree - well done for trying. Next time round I think the heavy lawyers must be involved to bat that blasted Maritz chap.
 
All this effort just to clarify the legal interpretation of a specific phrase. Wow, we just have to love how lawyers generate work for themselves when they develop laws / regulations :)

Hopefully, with so many people laying fibre, local usage costs should come down drastically, even if international usage costs remain the domain of Telkom/Neotel. I mean, most gamers would be happy if an ISP offers a R100/month* unlimited ADSL connection (terms and conditions apply - i.e. only local usage, an extra R100/gb/month for international usage). This should hopefully boost the local IT industry.
 
Thanks for trying!

Afrikaanse spreekwoord - "Probeer is die beste geweer" :)

A big thank you for your efforts. :)
 
I have not been following developments closely and I apologize if I comment on something previously discussed.

Isnt it amazing that telkom is suddenly developing systems to track local usage seperately from 'blended' bandwith?

I do not believe that is a coincidence and that Telkom in fact knew that they were in the wrong and that is why they started developments.

So, your efforts had some effect.
 
Have people seen the latest mail from Telkom dated teh 3rd of Jan talking about

"NEW!! TelkomInternet DSL TopUp and make sure to read about our exciting local bandwidth promotion! "
 
Will have a look at the Judgement and the details, I am currently sitting with a few complaints about Telkom's Cap happy procedure, so I need to get my Ducks in a row before I can level a complaint at them. If the small number of people that have contacted me is any indication of what Telkom are capping, then it would seem that this is a tip of a very large Ice Burg - In my personnel capacity I contacted Telkom on behalf of the customer, it took nearly 45 minutes before I got to talk to a consultant, who when asked do you get a lot of complaints about people being capped same not too many, then when asked why it took so long to get through, I was told that they were very busy, busy talking to people that had been capped.... Yes was the reply

Needless to say TommyGun this has paved some valuable ground
 
local bandwidth usage shall not be subject to the cap

Mr Maritz, who appeared on behalf of Telkom, raised two objections in limine. The first was that the Committee lacks authority and jurisdiction to hear the matter. The objection was, however, withdrawn during the course of Mr Maritz's argument

First off, what is Mr Maritz doing there in the first place, this is supposed to be ICASA - TG Cleghom and Telkom, Maritz does not work for Telkom, if there is going to be a hearing then I would expect Telkom to be there, if they want to have a law firm do their talking them they can bring them along, but sending a law firm to talk on their behalf does not cut it

However, the Committee refused to allow Mr Cleghorn to do so since it has never been a part of his complaint that Telkom had done so, and Telkom has never been afforded a reasonable opportunity to respond to such an allegation

Buck passing of the highest order, more over what is now clear is that Telkom are in the wrong and know full well that if the restricting of local bandwidth were to come up then or even now, they would be caught out

This is a very important point, all it needs now is for some more complaints to the CCC about being capped and Telkom are toast - Both Telkom and ICASA are taking the position that the customer is not Hard Capped, Telkom's feeble excuse is that they permit local access by allowing five websites to be made available, un-capped local... LOL


As indicated, Mr Cleghom no longer supports the interpretation he originally gave to regulation 3.4 and now supports Mr Maritz's interpretation. If regulation 3.4 is ambiguous regard should be had to the equities

Basically he set a trap for TommyGun and turned the whole case against him, ICASA saw an opportunity to pass the buck and jumped on the bandwagon, their has not been this much trade in water since Ponchas Pilate started his cleaning business - As for the arbitrary legal case quotes, pathetic, they show as much diligence as the feeble regulations. Maybe if they had quoted something like Henderson vs Stevenson 1875

In my view, it could lead to injustice to Telkom if local bandwidth should not count towards the cap. (in effect, the subscriber would in such a case not pay for his use of local bandwidth. Probably it was this consequence which led Mr Cleghom to abandon this interpretation

Were on Earth do Telkom and ICASA get the idea that that people do not pay for things, what do they think the ADSL and ISP charges are for, people pay for the service, it is bad enough that Telkom try and cheat us out of our due, but worse when ICASA join in. No one is asking for free, people are paying for something and want what they pay for, not to be side tracked with some cheap trick about not getting things for free. What ICASA should be asking is how much it would cost Telkom, and the answer is the same for local calls, it would cost them next to nothing. All they to do is spin people a story and hope they fall for it, or at least spend time working on it, because everyday they are left unfettered, they rake in the profits

What Mr Maritz has done is to fit the facts to best suit the client, the problem is, it is a up-hill battle, mainly because his client is wrong, it is always going to be hard to defend that which is not right. And it is just as easy to pull the whole argument apart, a flawed defence is always going to be easy to pick apart, Mr Maritz comes over with all the airs of a seasoned Poker player, but like the Wizard of Oz, once the illusion is spotted, the game is up, and like another great novel, it all falls apart like a pack of cards

It would be easy to counter the argument by drawing a parallel with a Tax cap, let us say that there is a tax cap of 45% on earnings, this rate is effective once you have earned a certain amount, for arguments sake let us say that this is One Million Rand - You will be taxed at a lower rate if your earnings are lower, but now what happens when you have non taxable income, say you win the lotto, there is no tax on this amount... So you can easily draw the following model, International bandwidth is taxable income that counts towards the taxable limit (cap) Local Bandwidth is non taxable income and does not count towards the taxable amount. In fact what this model clearly shows is how wrong it is to count local as part of the accumulation towards the cap, therefore Telkom have no right to calculate a cap on blended local and International, as it clearly states, local bandwidth usage shall not be subject to the cap

But wait, there's more..........
 
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The water flowing through this pipe may not subject be to the cap.

This means that once the cap is activated, the water must continue flowing.

It DOES NOT MEAN that the number of liters of water flowing through the pipe may not be used to trigger the cap "firing".

ICASA screwed us with crappy wording.
 
Will have a look at the Judgement and the details, I am currently sitting with a few complaints about Telkom's Cap happy procedure, so I need to get my Ducks in a row before I can level a complaint at them. If the small number of people that have contacted me is any indication of what Telkom are capping, then it would seem that this is a tip of a very large Ice Burg - In my personnel capacity I contacted Telkom on behalf of the customer, it took nearly 45 minutes before I got to talk to a consultant, who when asked do you get a lot of complaints about people being capped same not too many, then when asked why it took so long to get through, I was told that they were very busy, busy talking to people that had been capped.... Yes was the reply

Needless to say TommyGun this has paved some valuable ground

Currently writing up a doc for the Telecoms Action Group (TAG) on the CCC ADSL hearings. Includes a short history of ADSL Regulations; a description of how tommygun's complaint was handled at the CCC; crit of CCC process; outcomes (& current situation wrt Telkom and local bandwidth); lessons learned & recommendations; and advice for future consumer complainants to the CCC. Been up all night- brain is failing me currently- but hope to have it completed if not today then tomorrow, after which TAG will make it available to download.
 
Just been musing...If Telkom have decided to go the free local bandwidth ala section 3.4 of the regs how come they limit it to 10GB per 1GB blended bandwidth bought? Surely it should be unlimited? I'm happy with small victories but would this not be worth pushing, what do people think? It seems to me they have agreed with the regs but only gone half way.
 
Just been musing...If Telkom have decided to go the free local bandwidth ala section 3.4 of the regs how come they limit it to 10GB per 1GB blended bandwidth bought? Surely it should be unlimited? I'm happy with small victories but would this not be worth pushing, what do people think? It seems to me they have agreed with the regs but only gone half way.

Agreement here.
 
Just been musing...If Telkom have decided to go the free local bandwidth ala section 3.4 of the regs how come they limit it to 10GB per 1GB blended bandwidth bought? Surely it should be unlimited? I'm happy with small victories but would this not be worth pushing, what do people think? It seems to me they have agreed with the regs but only gone half way.

If anything, I feel more aggrieved that local traffic still contributes towards the cap. All they did was reduce the soft-cap, add a pricing structure for local traffic and allow one to incur this fee without any warning.
What's the point of this new blended tracker of theirs if it doesn't track any local traffic before hitting the int. traffic cap?
We should take our own liberties with interpretation and argue that since they've chosen the rate of R25.55/GB for local traffic after the cap, it should apply to all traffic after the cap :D. O.K. that's still a rip-off but it would be worth it just to give them one for a change.
 
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