DA on Telkom

kaspaas

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Dene Smuts has to be a knowledgable person to serve on the parliamentary committee for communications, and therefore what she says can't be anything else that the DA's official point of view.

Get the report at

http://www.moneyweb.co.za/news/tech_stocks/468802.htm

Meanwhile, the Democratic Alliance’s representative on the parliamentary portfolio committee for communications, Dene Smuts, says Icasa’s decision to scrap monthly charges is puzzling, and the findings show a lack of authority expected from a regulator.

”Icasa admits it is only now analysing the costs to Telkom by inspecting this year's charts of accounts and cost allocation manual (Coacam),” she says. “Reinforcing this admission, it points out that it can request costing information on Telkom's copper-based broadband offering, and intends to formulate broadband policy with the department of communications.”

Smuts says the findings “cannot be said to have grappled with the substance of the problems brought to Icasa by MYADSL and other consumers.”

<cut>

Smuts says a once-off installation fee would presumably have to be enormous to cover capital and operational expenditure, and would stop broadband rollout: ”Icasa is surely not expecting Telkom to provide free broadband.”

She says Telkom has been slow in rolling out ADSL but that “ competition, political and consumer pressure” resulted in the operator dropping its prices twice this year.

Smuts says Telkom’s 12 new packages in which either dial-up Internet, ISDN or ADSL are bundled with desktop computers, “may do more for broadband take-up in SA than years of promises by government to introduce e-services and bridge the digital divide”.

“Obviously this would come at a price over the period of the contract”, she says, “but the success of cell phone handset subsidies in the early years of cellular service shows that such schemes can augment the take-up of new technologies.”
 
I always hear about 1 Billion Investment, but nobody talks about their 6 Billion Profit...Its disgusting!!!
 
Celemasiko said:
I always hear about 1 Billion Investment, but nobody talks about their 6 Billion Profit...Its disgusting!!!

Precisely! They keep on spewing that they need to "recoup costs"... well, they've recouped their costs 6 times in the last financial year!!! It's sickening!
 
A somewhat confused message - they're obviously out of touch.
 
If we could introduce a new slogan ( DA ) :

One Phone one Vote - maybe they would tune in.
 
We need to get the point out there that Telkom are charging the line rental to cover bandwidth, which is then charged again by the ISP. No one objects to paying for the service nor are we asking for it to be free.

Telkom have two options, charge the ISP for the maintenance costs and let the ISP include it in the package price, or, eliminate the bandwidth charge and bill for a reasonable maintenance charge, such as ISDN.

Telkom seem to have forgotten the cost of bandwidth argument and are now spinning the cost of infrastructure one.

The journalists and politicians have not been following this story and will believe Telkoms latest spin. We need to provide them with the history.

I doubt that Telkom has bought of the DP, as well, so it can only be a lack of information at fault here.

Cheers
Chris
 
I agree with caroper on that last point. I have been in touch with the DA today by email (backwards and forwards) and I can quote
"We are in discussions about our final position on this issue. It is the feeling of our research department that the party should take a much harder line stance. We should issue a revised statement, clarifying this position today or tomorrow, so please would you hold off putting yesterday’s statement up, until we have done so."
somebody already posted the initial press statement so the cat was out of the bag so to speak already.
I anticipate that there will be a much longer and much more explanatory position statement in the press tomorrow.
Further correspondence states
"Dene has been a fierce critic of Telkom's high tariffs and will continue to fight for greater competition in the telecommunications sector - searching her statements on the DA website will confirm this. One of her major concerns is the undersea cable bottleneck, something we are currently looking into. Her view, in this case, was that banning monthly fees might push up the the initial installation costs which would be unfortunate. She also noted that some progress has been made recently in bringing down tariffs - hopfully there will be more."
which reitterates caropers feelings and actually proves caroper is bang on the money. There is an abject lack of understading of what the Telkom billing structure actually boils down to. Something Telkom has banked on. The pricing model is so complex that it is hard to discern what bit pays for which service, and by breaking the pricing down and tiering it the way Telkom does, it is so easy to say but look, our entry level product is under R300 a month....what is not mentioned is the costs recouped elsewhere layer on layer on layer. Dene needs to understand that it is this layering of costs that we essentially object to as uneccessary and an exhorbitant manipulation of the market.
All this I have said to Dene's press office and research office directly.
So, I wait for their second official position statement with interest but not bated breath.
kisses
PP
 
Is Dene up to speed?

I have sent a message to Dene Smuts. Hope she gets it and reflects on what she has said.

1. For one, the words "Competition" and "Telkom" cannot go into the same sentence. Any reduction in prices this year was because of consumer pressure and not competition.
2. The other thing is that, it is the norm overseas that "Rental" or "Connectivity Rental" for ADSL call it what you like, is not charged by telecoms. This is the job of the ISP, in other words SAIX, not Telkom.
If this was the case in South Africa, it would put the onus on the ISP to make the prices and not Telkom. And IMO this would be a major step to level the playing fields and spur competition in the market.

Lastly, Dene Smuts may be a good politician, but clearly, unless she was misquoted needs to get up to speed in the issues raised in the 46 page ICASA Report, which can be downloaded here.
 
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w1z4rd said:
I actually agree with you. All the old NATS have been over there, and the only people the DA represents seems to be share holders. Mind you. the ANC is cruddier party:P
please lets not lose this thread which up until now is about invoking a response/official position statement from a political party to strengthen out case, into a political free for all.
lets leave our political affiliations in the off topic thread....please :)
 
Have you read the responses to that story on Moneyweb? wow! and they say that myADSL is vitriolic! :)
 
arf9999 said:
Have you read the responses to that story on Moneyweb? wow! and they say that myADSL is vitriolic! :)
Yeah, I also noticed that. Its not vitrole, its freedom of speech. Its merely what South Africans think of Telkom after being ripped off blind for so long.

I think Telkom is the most hated company in South Africa.
 
Lets just leave the politics out of this

I agree with Peapod. Let’s just leave the politics out of this.

Although an Official Response from the ANC on the ICASA findings is overdue.
Pres Mbeki's State of the Nation Address 174 days ago about the unacceptable cost of telecommunications in South Africa seems to have fallen on deaf ears in cabinet.
 
arf9999 said:
Have you read the responses to that story on Moneyweb? wow! and they say that myADSL is vitriolic! :)
They must have been referring to Noone?
I think Telkom is the most hated company in South Africa.
I have brought this up in conversation and I personally don't know anyone that has not got some gripe about Telkom.
The "blistering criticism" is prevalent right throughout South Africa, without a doubt.
 
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been on phone and on email backwardsand forwars with DoC today and well, I am as confused now as they are. I wouldnt hold my breath munwaal, an official position statement is unlikely.
P
 
This is not a politcal knock.. but that is very VERY sad.. pathetic, actually..

Surely the DoC must say SOMETHING? They're the friggin COMMUNICATION DEPARTMENT.. and the only ones NOT communicating.
 
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