ADSL IPConnect price reduction uncertainty

Everyone knows that Telkom's IPC is the biggest cost to ISPs. The pricing has to come down. There's no way around that.
 
So we can expect another article on 31 March to say that they are really thinking about doing something now and we should give them another couple of months to decide what exactly that will be.
 
mybroadband discussing that ICASA wanting to discuss the promised ADSL IPConnect price cut intervention they want eventually to discuss with Telkom in future which will only be able to happen in open discussions which have to be discussed and announced first in order for preliminary discussions to pave a way for initial discussion documents which in turn can lead to discussion to starts in which time the involved ICASA counsellors terms have ended, too much time has past, Telkom lawyers claiming irregularities, technicalities and jurisdiction.
When the public and business complains to ICASA again then the discussion can start.
 
It’s going to be very complex for ICASA to determine exactly what these costs are
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No, it is not! The costs are well known, stop lying and start doing your jobs :(
 
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Valis said:
No, it is not! The costs are well known, stop lying and start doing your jobs :(
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He's referring to the input costs for the various components that make up the IPC service. If you have that list then please share with us :)
 
nfbs said:
mybroadband discussing that ICASA wanting to discuss the promised ADSL IPConnect price cut intervention they want eventually to discuss with Telkom in future which will only be able to happen in open discussions which have to be discussed and announced first in order for preliminary discussions to pave a way for initial discussion documents which in turn can lead to discussion to starts in which time the involved ICASA counsellors terms have ended, too much time has past, Telkom lawyers claiming irregularities, technicalities and jurisdiction.
When the public and business complains to ICASA again then the discussion can start.
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There is also the obligatory need to address all industry stakeholders in order to prepare a discussion document for the discussions, said document will be delayed at the request of the DOC ...
 
rrh said:
There is also the obligatory need to address all industry stakeholders in order to prepare a discussion document for the discussions, said document will be delayed at the request of the DOC ...
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... pending further discussion with the majority shareholder! :D
 
Gajjar suggested that ICASA should unbundle the IPC price components.”I think rather than a blanket price reduction in IPC, ICASA should rather request that the IPC price components be unbundled, so that component costs can be substituted by providers (e.g. We would terminate using our own fibre rather than leasing a circuit from Telkom),” said Gajjar.
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What stops them from doing that already?
 
Ipc is currently four times the price of international fiber bandwidth. Even if Ipc costs drop by 50% they would be too high.
 
“ICASA has engaged Telkom in respect of a price reduction for IPConnect services. Once discussions have been finalised, the Authority will inform all stakeholders of changes in the wholesale access regime for fixed line services.”
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lol... you don't have to "engage" Telkom... you can just tell them what it is going to be. You are the Industry Regulator, start acting like it!
 
Garyvdh said:
lol... you don't have to "engage" Telkom... you can just tell them what it is going to be. You are the Industry Regulator, start acting like it!
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They don't have the balls/brains to tell telkom anything, the next we will hear is that they see it as a challenge and will convene a lagotla (or whatever they call it) sometime next year and then decide on a follow-up lagotla 6 months later and then ......
 
Garyvdh said:
lol... you don't have to "engage" Telkom... you can just tell them what it is going to be. You are the Industry Regulator, start acting like it!
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They don't have the balls/brains to tell telkom anything, the next we will hear is that they see it as a challenge and will convene a lagotla (or whatever they call it) sometime next year and then decide on a follow-up lagotla 6 months later and then ......
 
I am confused by Telkom IPC pricing, follow my logic quickly:

There is limited bandwidth on the national backhaul network, therefore they need to charge more for the scarce resource. Ideally then they would like to get as much traffic off the network to clients at local POPs ie CT, DB etc IPC switch centres. In this case pricing for local IPC connections would be much cheaper as an incentive, but it is not [see article with MWEB stating pricing in this regard].

Alternatively they have loads of national backhaul available, in which case the cost should be really competitive to try push more use of the network and stave off competition [disincentive for competitors to invest in national fibre routes], but they don't do this either???? WTF??

It is a fairly obvious short to medium term rent seeking activity, once there are really good, viable cheaper alternatives they will just pull the same move as they did with their ADSL ISP - they will drop the prices to realistic levels to compete directly.

The real question is will they have burnt too much goodwill to be able to retain customers by this point and will they try to buy customers back initiating a spate of anti-competitive lawsuits against them? It is crazy, Telkom have hundreds of thousands of kms of fibre loops all over the country, they have some amazing tech (DWDM etc) and could get so much more utilisation out of their network if they just stopped with the high rent seeking activity (I blame upper management for not understanding the market they are in) and become the darling of all their competitors by focussing on wholesale sales with local handover to ISPs. If you want to talk simple they could just VLAN ADSL ports back to a specific ISP over their metro ethernet links to the POP. I won't go further in to it, but it is really not networking rocket science to achieve this.

A second major thing Telkom should also look at is proactive maintenance which, by lowering data prices and increasing total revenue from more customers, would pay for itself.
 
The lack of clarity on what will happen by this deadline – ie. will the engagement start then, or will prices be reduced by 31 March – is frustrating many industry players.
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Strange then that Icasa acted to decisively on the lowering of cellular interconnect charges. Oh wait, they did that to pave way for Telkom to launch 8ta.
Very hard not to believe that Icasa are Telkom puppets.
 
Have we not learned anything over the last 20 years with ICASA ?
I am starting to think the only people more ignorant and stupid than ICASA are those believing their drivel !
 
I wonder once IPC costs are down what will the ISPs then complain about...just a thought from a different angle. All the years Telkom has been the evil one, if the evil one is forced to change they are going to see innovative offerings from them?
 
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