Communication with the DA

[ASF]

After RPM's predictable meeting with Telkom a few days ago I communicated with the DA on the issue. Below please see communication with them to date FYI:

<b>Sent: Wednesday, August 20, 2003 3:30 PM
Subject: DA siteMail : Telkom deregulation pt 2</b>

Hi,

I have just read the DA's policy on deregulation within the ICT industry as per your website.

I am part of a user community that uses the Telkom ADSL service. There is a growing dissatisfaction with the level and quality of service being offered. We have tried to engage with Telkom directly with no meaningful result.

More and more we feel that the root of the problem is the fact that the Telkom monopoly is allowed to continue operating even though the govt gazette dated 24 May 2002 clearly states that a Second Network Operator license would be awarded by Dec 2002. In other words Telkom is being protected politically - therefore as the electorate our only recourse is a political one!

As the official opposition you are tasked with keeping the govt in check. How could we assist you in showing the govt that South Africans demand deregulation of the telecommunications industry?

Regards,

<b>Sent: Wednesday, August 20, 2003 10:35 PM
Subject: Re: DA siteMail : Telkom deregulation pt 2</b>


they have actually done a U turn and we are already engaged on preparting the ground for a converged environment. The Second Operator is having trouble getting off the ground since once again the bidders have no equity. (See my statements Business Day) Our hope lies in broadband offerings by Sentech and private sector players. I am asking my colleague Vincent Gore to anwer you ADSL query
Rgds
DS


<b>Sent: Wednesday, August 27, 2003 10:59 AM
Subject: RE: DA siteMail : Telkom deregulation pt 2</b>


My apologies for the late reply. My hard drive crashed last week and only now replying to messages.

With regards to your ADSL query this is indeed a proble. Particulalry around the pricing and capping of bandwidth. There has never been an offering of ADSL with such ridiculous constraints where there has been competition. In my view the cause of the problem is lack of competition on this sector. Telkom has taen an inordiantley long time in making ADSL available to SA consumers, and then with restrictions. The business model is clearly based on maximising profit, without minimising income form other sources such as ISDN and diginet; hence the market positioning of Telkom ISDN. I addressed senior mangemnt of Telkom on this issue a few weeks ago, and their answer was predictable; business decision to place ADSL where it is, and cost of intenet is ddependent on distance to international websites. A few days later Telkom announced some relaxtion on the ADSL constraints; not sure if the 2 events are connected, but I like to think so.

Hope this helps

Vincent Gore

<b>Sent: Wednesday, August 27, 2003 11:38 AM
Subject: RE: DA siteMail : Telkom deregulation pt 2</b>

Hi,

Thanks for the reply.

We (general ADSL users) have expanded our forums to include deregulation as most of us have realised over time that the only solution to the SA Telco problem is a systematic total deregulation of the industry.

I would like to invite you and Dene to join our forums (register @ www.myadsl.co.za). We feel that the sorry state of affairs wrt deregulation is NOT only a Telkom issue, rather a political one - as can be seen by the actions of the Minister of Communications to date.

As part of the electorate we feel we have a constitutional RIGHT to be heard on this issue. President Mbeki himself has stated that he foresees economic growth in SA coming from the ICT sector.

As none of us are politicians we are looking to you as the official opposition to take a stand on our behalf. Please note however that as a user community we are apolitical.

Looking forward to your assistance on our behalf in this matter.

Regards,

[kaspaas]

Thanks for sharing this with us.

I believe we should pressure Telkom into making an ADSL offering WITHOUT ANY INTERNATIONAL BANDWIDTH. International bandwidth to be purchased additionally - something like "Pay before you surf international".

This way there excuse of the expensive international bandwidth falls away, and then there can be pressure on their pricing structure. Actually - it is the only way to proof that Telkom is robbing us with a lame excuse.

BTW: The cost of providing ADSL on a line has nothing to do with the cost of International Bandwidth, and yet, that part of the cost on its own is already more higher than the cost at which 1st world ADSL is offered elsewhere - line and bandwidth.

Telkom is merely using the aledged high cost of International Bandwidth as a scapegoat to hide its robbery policies.

[ASF]

Yeah its a cash cow - and boy are they milking it!

I think the idea of unilimited local access with no cap is a very good one. Anyone that has been involved with an ISP knows that the longhaul is going to cost (whether it's purchashed from Telkom or not - which is an entirely different issue altogether) - so giving ADSL users a service where local traffic is unlimited with a cap on international as part of the subscription makes a lot of sense...

And you are quite right - ADSL last mile costs have nothing to do with Int bandwidth. But methinks they will then argue that local peering circuits will become maxed out and cap local anyway....

Without sounding pessimistic I personally believe that TELKOM is working to an internal agenda - one where they can either:
* Position themselves into an unfair adavantage against the SNO (if it ever happens)
OR
* Be in such a position that SNO bidders pull out because of the above - they can then sit back, smile and say "look govt we really want competition but nobody wants to play with us...."

I believe that a systematic and total dergulation of the telco industry is the only answer!

[martin]

Hi ASF, thanks for pushing the deregulation issue and setting up this forum. At least the DA's response was a bit more encouraging than Telkom's.

[madala]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote"><i>Originally posted by kaspaas</i>
I believe we should pressure Telkom into making an ADSL offering WITHOUT ANY INTERNATIONAL BANDWIDTH.
<hr height="1" noshade id="quote"></blockquote id="quote"></font id="quote">

Right on! ADSL is a "last mile" connectivity solution, having absolutely nothing to do with anything beyond the exchange.

Please Telkom, save yourselves the enormous burden of international costs, and sell me pure local ADSL connectivity so that I can use it to connect to the ISP of my choice, and have the option to haggle with many ISPs regarding bandwidth and caps.

Better still, save yourselves even more costs, and make some money for long-ago amortized space. Allow ISPs to rent a small space in your exchanges to locate their own DSLAMs. You just rent me the exchange line at normal telephone rates. After all, it is just a normal copper line, and the fact that other parties run ADSL over it would not cost you any extra.