How to save Telkom: Free the local loop

May be slightly off-topic but ...

From a broadband perspective, does freeing the local loop actually help?

How would that affect IPC? From what I can glean, it is IPC that really controls the broadband pricing, and Telkom controls that. Or is the consequence that when LLU goes through, IPC disappears?

Anyone who knows anything about that care to comment?
 
Not a bad idea, Ben Kelly !! Pass on the access deficit as well as Telkom's biggest headache to someone else!!!

This option has been on the table before, but as Ben correctly points out it will be difficult to get it past the unions as well as their political masters.

From a pure business point of view, it makes perfect sense!!!
 
But knowing Telkom by the decisions they make, it wont happen anytime soon even though it make business sense.
 
Odracir said:
Free the local loop will be the end of Telkom and they know it.
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No, it won't. It would make them leaner and stronger as they would then concentrate on being a pure network provider and then they could dabble in the retail sector if they want to...

Their biggest cost (and loss) component of their business is the local loop.
 
How would Telkom get this past its unions, which would probably throw a temper tantrum of note when the word ‘restructuring’ is mentioned?
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Tough for them, the country comes first.
 
I don't feel sorry for them.

After several encounters with their van-driving visiting technicians I have reached the following conclusions:

99% of them are bumbling, incompetent fools who are not interested in fixing a fault that's staring them in the face.
 
I really got excited when I saw this article's picture because it looked the stand in CEO was pushing for LLU.

God Damn it!!! Back to the reality that is Telkom
 
Tanya35 said:
I don't feel sorry for them.

After several encounters with their van-driving visiting technicians I have reached the following conclusions:

99% of them are bumbling, incompetent fools who are not interested in fixing a fault that's staring them in the face.
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And those are the guys that will be part of the new local loop company!!!
 
Would Telkom be willing to give up its stranglehold on the local loop and compete on an equal footing with the rest of the market?
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Why give them a choice at all? They've been allowed to be monopolistic for so long, and then some, yet they still can't provide a world-class service at a cost most of us can afford.
Sink or swim time Telkom, buddy.
 
evilstebunny said:
Why give them a choice at all? They've been allowed to be monopolistic for so long, and then some, yet they still can't provide a world-class service at a cost most of us can afford.
Sink or swim time Telkom, buddy.
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The problem is that it will cost us consumers more and not less. As per the article Telkom have an access deficit - they are making a loss on the local loop. If the LL were to be sold to another company, that company will have to charge you at least what it is costing them. Ergo - rental increases...
 
Completely off topic, but what on earth is up with these article pictures on MyBB. They are terrible.
 
I think the big question is how much is it actually costing Telkom to support the local loop do they actually know or are they making up this rubbish about it costing so much to maintain to justifiy the high prices to other isp's and users

I think I vote for the second reason or we would have a telkom eager to get rid of the local loop and if they really wanted to it would be gone already
 
DuckieZA said:
From a broadband perspective, does freeing the local loop actually help?

How would that affect IPC? From what I can glean, it is IPC that really controls the broadband pricing, and Telkom controls that. Or is the consequence that when LLU goes through, IPC disappears?
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With LLU you get access to the copper which your customer would pay you for instead of Telkom - then you would need a DSLAM and metro ethernet ring or use IPC for which you would pay Telkom. So Vodacom and MTN would offer ADSL and Telkom is already offering mobile - we have progressed far!
 
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killkom said:
I think the big question is how much is it actually costing Telkom to support the local loop do they actually know or are they making up this rubbish about it costing so much to maintain to justifiy the high prices to other isp's and users

I think I vote for the second reason or we would have a telkom eager to get rid of the local loop and if they really wanted to it would be gone already
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They have to supply the figure to ICASA every year... got any contacts?

IIRC their MD mentioned it in an article a few weeks ago!
 
According to recent reports it costs Telkom double what they charge us in line rental to keep your phone connected on a monthly basis
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What reports would this be? Because that sounds like bull****. Especially considering that a prepaid line is R120 for the year!
 
moggie said:
They have to supply the figure to ICASA every year... got any contacts?

IIRC their MD mentioned it in an article a few weeks ago!
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Is that figure audited or are they just taking telkoms word for it

Its in telkom's best interest to have the figure high it puts companys off when they are looking for someone to take it over and it prolongs the process

In Countries like the UK they have unbundeled the local loop and most isps offer you a free voice line with your adsl line which costs a lot less than ours

I find it imposible that the fix lines are not profitable I just can't believe it if that its actually true then they are being run inificiently

Some people say that our infrastructure is old thats why it costs so much but I start to doubt that when they are successfully running 8 to 10 meg adsl in a lot of places
 
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