Article: Telkom vs. IS peering battle

hArTh

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http://www.moneyweb.co.za/news/tech_stocks/427350.htm

Internet irony
Ana Monteiro
Posted: Thu, 24 Mar 2005 12:02 | © Moneyweb Holdings Limited, 1997-2005
Dimension Data subsidiary Internet Solutions (IS) has made an application to the Pretoria High Court to determine whether fixed-line operator Telkom’s refusal to foot part of a network upgrade bill is fair.

IS director Hillel Shrock told Moneyweb the capacity of its peering network with Telkom – that is, the link between the Internet service provider (ISP) and Telkom’s SA Internet Exchange (SAIX), the source from which all local ISPs obtain connectivity and sell it on to consumers – started running out a few months ago.

By setting up these links, ISPs are able to reduce both traffic congestion on the lines and costs, as they do not have to consume expensive international bandwidth for their Internet and faster asymmetrical digital subscriber line (ADSL) offerings.

“We notified Telkom of the pending capacity problem on the peering link , but instead of opting to share the cost of upgrading the link, Telkom’s response was that we should purchase direct links to the South African Internet exchange (SAIX) which they own, and we would have to pay normal rates,” said Shrock.

Telkom spokesperson Xolisa Vapi told Moneyweb that all major ISPs could request more bandwidth at commercial rates from the company.

In mid-March, Telkom served the ISP with a notice of termination of the existing peering contract, which termination would be effective in three months.

Global best practice involves putting in place links between two ISPs networks, in order to reduce costs – by saving international bandwidth – as well as improving performance by the shortest possible route between two networks. The costs of these links are shared.

Ironically, says Shrock, both IS and Telkom customers will experience compromised service levels, as consumers who have bought ADSL services from Telkom will struggle to access content through IS: “We are trying to work around this, but ADSL services especially are being compromised. It is affecting all customers.”

“We are taking the matter to court in order to get some clarity on whether the sole provider’s behaviour in terminating the peering agreement is valid. However, we are trying to reach an amicable agreement with Telkom, and we hope that the negotiations will alleviate the need for legal action,” said Shrock.

Dobek Pater a telecoms analyst from Africa Analysis, says the three biggest ISPs in South Africa – MWeb, IS and MTN Network Solutions – do peer directly with the SAIX to a limited degree.
 
So - it's a little clearer now:

IS purchases the SAIX diginet line to provide their users with access to Teklom's stuff (e.g. SAIX.CO.ZA). Now IS users can access SAIX.CO.ZA along this diginet line instead of being forced to use international bandwidth to access SAIX.CO.ZA. Verry nice of IS to do this. Well - IS has to pay Teklom to access the international line anyway, so they may as well just get the diginet line, which should be cheaper than bandwidth on the international line.

Now if Teklom wants to give their users access to IS's stuff, then they must purchase an IS diginet line, otherwise, all teklom users accessing (e.g.) ABSA.CO.ZA will go through international routes.

Oops - whatdoyoumean IS cannot sell Teklom a diginet line? What regulations? Who's damn stuupid idea was that?

Whatdoyoumean tekom controls all international bandwidth? What regulations? Who's damn stuupid idea was that?

I really want the court transcript of this one.
 
Let's hold collective thumbs for I.S. - Telkom should lose this one and end up sitting on their arse looking pretty ****in stupid.. still - an unnecessary expenditure for I.S. having to involve the lawyers.. I have no respect for Telkom as they have no respect for anyone else..

_|_ to Telkom
 
MaD said:
Let's hold collective thumbs for I.S. - Telkom should lose this one and end up sitting on their arse looking pretty ****in stupid.. still - an unnecessary expenditure for I.S. having to involve the lawyers.. I have no respect for Telkom as they have no respect for anyone else..

_|_ to Telkom

Telkom will appeal ad nuseum ..and delay the whole matter for 5 years.
 
5 years

Well lets hope IS will have other options before 5 years is out.
Telkom sure know how to alienate people. They should write a book, "Alienating the people of South Africa for Profit".
 
Telkom is a barrier to entry bar none. I have received a number of mails where people have said they're moving back overseas because its too expensive to communicate in SA. Today I got one as well where the person is moving back to Spain.. there is an ISP who has just increased the speeds of the connections FIVE FOLD for the same price.. amazing..

A lot of people are of the opinion that Telkom is the root of all evil in South Africa.. IMHO they are the worst thing for economic development as countless firms are dissuaded from moving to SA as they would pay hundreds of thousands a month for a few megs of connectivity when abroad it would be a tiny fraction of that..

Hopefully other countries will do the total OPPOSITE of what Telkom and SA Gov is doing - it will have a positive effect on their economy and THEY will receive all the investment WE should be getting.. our economy is something which Telkom visibly doesn't give a flying **** about. As long as their shareholders are coining it they're as happy as a pig in **** - stuff the rest.
 
its been dead quiet. last i heard, the big bass all got together to try sort a plan out. turns out that telkom is looking at upping its share in didata, which in turn owns IS. so political pressure from share holders is likely to make this silently fade away. and who suffers? the feckin consumer again. where is debbie now!!!!!!
 
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