Bizarre ADSL IPC pricing, Telkom double billing questioned

I don't think you are helping make the case that IPC is to expensive with the figures you've presented

go to page 22 and you'll see a figure of under 2k a month per megabit
https://www.icasa.org.za/Legislatio.../ItemDetails/mid/1685/ItemID/933/Default.aspx

Since 2011 IPC costs have almost halved.

An that there , your last paragraph , is the essence of the issue. So they halved the costs in 2 years time and still make a nice little profit. You`ve been milked dry ( indirectly via your ISP ) for an ADSL service prior to that. Any they only agreed to start decreasing the costs because Wireless started killing the fixed line business ( and off course the Comp com slap ). If it wasn`t for that you still would have paid charged accordingly via your ISP.
 
I reckon many ISPs are going get a shock if and when LLU becomes available, suddenly the cost of maintaining your own access infrastructure is going to dawn on them...even if it is just a few backhaul points.
 
Ol eyec:
Dude you are clearly out of your depth and have no ****ing idea what the actual problems facing Telkom are and where they have turned around and where they have been horribly short sighted.

my hatred is anything but blind; I've got enough insight to recognize what is actually at play here. By all means fight for IPConnect to be reduced - but do so using a case that is rational and doesn't resort to lies. I reckon that Telkom can get IPConnect 50% cheaper over 5 year at its current base

If the regulator follows MWEB's lines of reasoning our network infrastructure will not be invested in and MTN, Vodacom and MWEB will milk the public and the other network infrastructure owners are gutted out - in the case of the MNOs they will be cautious with data infrastructure because of the poor RoI while milking out on the voice revenue.
 
I reckon many ISPs are going get a shock if and when LLU becomes available, suddenly the cost of maintaining your own access infrastructure is going to dawn on them...even if it is just a few backhaul points.
Both MWEB and IS have expressed that full LLU are not really what they are after but rather forcing Telkom and the MNOs into giving them service products at prices they'd like.

MWEB submits that full loop unbundling may not be the most beneficial solution, specifically for ISPs. Full loop unbundling will prove to be a very costly investment, especially for entrants as they will need to invest in their own DSLAMs, etc.) and this will inevitably lead to poor uptake.

They don't want to build their own network using facilities, nor do they want to invest in the network. If they wanted to invest in the network they would. Major ISPs shunned any prospects of investing in a SPV to take over the copper infrastructure of the last mile - and its important to note: the suggestion is not that MWEB and IS should buy holdings in an SPV but rather that by shunning such a tentative opportunity raise serious problems for floating such a utility.

What MWEB wants is an AT&T type breakup of Telkom (there are important differences in the situation but you understand what I am going with):
Before any Bitstream or Local Loop Unbundling occurs, there must be effective restructure of the Facilities Providers, e.g. Telkom. There must be a clear distinction between Telkom as the network/Facilities Provider and Telkom as a Facilities Seeker. There must be oversight by the Authority or auditors of this restructure to ensure that this restructure is correctly carried out.

Now I'll be damned if a regulator restructures a company without that company having been found to have contravened the regulations and such a contravention triggers restructuring at the insistence of a rival who is simply unable to compete because of its own ineptness. Telkom must first be held for not complying with facilities leasing regulations and get the fines (500k a shot) those fines will be crippling and Telkom will have to get into compliance mode which can include restructing. As part of being held guilty of certain illegal activities under the the prevailing laws Telkom agreed to a certain separation and "restructuring" with the comp comm. Telkom has not however been held guilty of anything concerning LLU because of the hangup on the LLU regulations.

If we are going to get in the business of restructuring companies to unlock potential and give consumers a better deal Naspers is a far bigger target than Telkom and the particular integration of MWEB into the PayTV operations of Naspers.

ICASA simply does not have the authority which they are being asked to use and we should take offence at attempts to encourage the regulator to act ultra vires
 
Ol eyec:
Dude you are clearly out of your depth and have no ****ing idea what the actual problems facing Telkom are and where they have turned around and where they have been horribly short sighted.

my hatred is anything but blind; I've got enough insight to recognize what is actually at play here. By all means fight for IPConnect to be reduced - but do so using a case that is rational and doesn't resort to lies. I reckon that Telkom can get IPConnect 50% cheaper over 5 year at its current base

If the regulator follows MWEB's lines of reasoning our network infrastructure will not be invested in and MTN, Vodacom and MWEB will milk the public and the other network infrastructure owners are gutted out - in the case of the MNOs they will be cautious with data infrastructure because of the poor RoI while milking out on the voice revenue.

Aaah nice - let`s turn to insults and swearing when someone disagrees with our opinions. Always healthy in a good debate.
You honestly want to talk about fixed line infrastructure investment on here ? How many new ADSL lines were installed in the past 12 months ? What is the ADSL line penetration ratio for SA citizens ? What is Telkom`s plans to grow fixed line broad band in SA ?
 
The insults started with:
You`re blind hatred and subsequent frothing at the mouth with any ISP taking on Telkom WS are very entertaining but also pretty odd

Lets honestly talk about fixed line infrastructure:
Which enterprise invested the most money into fixed line infrastructure particular fixed line infrastructure for end users in the last 24 months? I don't see any IMAXs being rolled out by anybody other than Telkom. The digital villages pilots have not been delivering anything really promising have they?

Now lets honestly look at the problems of Telkom being shortsighted on the importance of broadband - which is something I constantly raise. The pillaging Telkom's assets by competitors doesn't help and drives the case for Telkom to be shortsighted.
 
The insults started with:


Lets honestly talk about fixed line infrastructure:
Which enterprise invested the most money into fixed line infrastructure particular fixed line infrastructure for end users in the last 24 months? I don't see any IMAXs being rolled out by anybody other than Telkom. The digital villages pilots have not been delivering anything really promising have they?

Now lets honestly look at the problems of Telkom being shortsighted on the importance of broadband - which is something I constantly raise. The pillaging Telkom's assets by competitors doesn't help and drives the case for Telkom to be shortsighted.

You confusing "shortsighted" with pure incompetence. They happy with a high margin on a small base , all nice and cosy. Instead they should drop IPC costs , unbundle data/voice and invest in growing the fixed line network and end up with a smaller margin on a much bigger base. Telkom`s eggs were all in the Wireless basket that spectacularly crashed and burned. So now it`s hanging on for dear love to the revenue left in the piggy bank , which is fixed line / IPC. Don't expect any ( unforced ) favours soon. Again , don't let your , dislike ( less offensive ? ) , for the independent ISP`s hide the elephant in the room from you.
 
I like independent ISPs

NTT and Naspers are hardly "independent" ISP stables.

No there is a lot of competence at Telkom, just some very key characters who are grotesquely incompetent in some key positions. The collapse of the KT talks was a big blow by government.
 
You confusing "shortsighted" with pure incompetence. They happy with a high margin on a small base , all nice and cosy. Instead they should drop IPC costs , unbundle data/voice and invest in growing the fixed line network and end up with a smaller margin on a much bigger base. Telkom`s eggs were all in the Wireless basket that spectacularly crashed and burned. So now it`s hanging on for dear love to the revenue left in the piggy bank , which is fixed line / IPC. Don't expect any ( unforced ) favours soon. Again , don't let your , dislike ( less offensive ? ) , for the independent ISP`s hide the elephant in the room from you.

I disagree. Here is the 6 month numbers and you can check the previous year's numbers as well... Fixed Line appears to remain a priority.

MyBB_115.jpg
 
Moreover - between the general rant that I've grown accustomed to from eyc, I actually missed this particular statement - Telkom have very much not put enough eggs into the "wireless basket" if one looks at global trends (which take place just as much if a little bit of a lag in SA) shows the importance of mobile data.

eyc really sounds like somebody who wants Telkom to not operate in the mobile space and who doesn't understand revenue and investment balancing at all. I find it odd because really the MNOs aren't doing a superb job in getting broadband out either - Vodacom certainly has done a lot for 3G but on the broader scale of things pricing is bad, no real wholesale industry etc ...
 
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