How would you reduce telecoms prices?

Do you support the PCC’s proposal to cut interconnect rates?

  • Yes

    Votes: 98 96.1%

  • No

    Votes: 4 3.9%
  • Total voters
    102
Well the proof is in the current socio-economic environment. Health, education etc. are all significant concerns. Telecommunications is viewed as, not a luxury but a non-priority against the former issues.

After taking a few public administration courses, one gets to fully grasp the beaurocratic aspect of the budgeting process.

EDIT: Someone has to play devil's advocate.
 
LLU is fine. But for more immediate results:

Regulate Telkom's IPConnect. Telkom's charges for this service are outrageous and anti-competitive. It is more than 50% of the cost of delivering ADSL to the consumer (at least for ISPs other than Telkom) and the main reason why we have seen little or no pricing benefit from the Seacom cable. It is a monopoly service, and should be priced at cost plus a fair margin, not the many multiples of cost that Telkom currently charge.
 
Gatecrasher said:
LLU is fine. But for more immediate results:

Regulate Telkom's IPConnect. Telkom's charges for this service are outrageous and anti-competitive. It is more than 50% of the cost of delivering ADSL to the consumer (at least for ISPs other than Telkom) and the main reason why we have seen little or no pricing benefit from the Seacom cable. It is a monopoly service, and should be priced at cost plus a fair margin, not the many multiples of cost that Telkom currently charge.
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Yes this is one area which would change things very quickly. If the price was forced down to a fair level, we would instantly see a drop in data charges.

+1000
 
ADSL access charges are outrageously high, and bear no relation to the cost of delivering the service. They should be cut down dramatically to cost plus a fair margin.

ADSL users should not be forced to pay for telephone rentals unless they actually use the land line to make voice calls.
 
Make internet access tax deductible for individual taxpayers.

Costs associated with broadband Internet access are only tax-deductible for individuals who work from home or who use their broadband connection for business purposes.

"This ignores the fact that broadband is used at home by people looking for employment, study opportunities and engaging in other activities that benefit the economy," Mtshali said.

http://www.busrep.co.za/index.php?fArticleId=3100518
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This is the consequence of apparent historical collusion between dominant mobile operators in the country - which has placed profits and greed above people - and the incapacity of ICASA to effectively regulate this matter, the committee said.
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It seems to me that everyone agrees that the operators price-fixed, so my suggestion is to take them to trial. But instead of fining them some arb amount that has no benefit to the customer I'd force them to lower their prices irrespective of their losses. This way they'd channel some of their illegal profits back to the customer & benefit the people that they stole from. Let them explain to their shareholders why their previous profits were artificially inflated and that they're absorbing the losses as restitution and community service. Affecting their bottom line is the only thing that'll force them to become competitive & think twice about colluding in future.
 
Gatecrasher said:
ADSL access charges are outrageously high, and bear no relation to the cost of delivering the service. They should be cut down dramatically to cost plus a fair margin.

ADSL users should not be forced to pay for telephone rentals unless they actually use the land line to make voice calls.
Click to expand...

+1

Drake2007 said:
Refer to this old article on copper theft, how about stiffer penalties for this crime (no idea what the penalty is now) for merchants/dealers and thieves alike.
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Suppliers/Telkom should get away from copper :p and follow a leading example with security http://mybroadband.co.za/news/Telecoms/9644.html
 
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regarding selling of shares: this should be the first step, otherwise they will never be fully committed to doing anything about dropping prices, because they will be losing money.

Also, they should NOT sell shares to government employees or their business partners.
 
... and give the Competition Commission full authority to investigate and fine for anti-competitive behavior.
 
I think that we should make it clear that it is excellent that they are doing something and inviting input from the public.

My suggestions:

  • IPConnect pricing
    In my opinion this is a major stumbling block to ADSL competition etc. Telkom can basically charge whatever they want for this. They should make the charges cost + 10% or something by law. If the costs came down for this imagine what guys like IS could do. We already have uncapped DSL with the prices so high. I think that dropping this fee would result in innovative and cheaper products from the ISPs.
  • LLU
    If I can choose between Neotel, Axxess, Vodacom, IS, Webafrica for my line then you had better believe prices will drop.
  • Drop interconnect rates
    Why they should charge more than cost is beyond me. Government needs to make sure that the price drops make it through to us though.
  • Disband ICASA
    I haven't been really impressed with them. I am so glad that parliament look like they are being very proactive and assertive in dealing with the telecommunications companies. If they manage to drop prices why do we need ICASA? At the very least they should fire everyone and start again...
 
The alpha and omega, golden bullet, answer to all questions thing is................ LLU!!

why not LLU by november this year? this solves everything, starting from ipconnect and ending with interconnect. Here is the situation, if anyone can provide internet to my home without making me pay super high telkom line rentals then my current system of using only voip for calls will be even cheaper. then we can all go out and get (import or manufacture locally) simply phones without gsm but wifi support and put metro wifi to the test and voip over that, effectively. WHO CARES about interconnect rates, if you can't be cheaper then EURO 0.06 per minute for mobile or 0.015 for landline (smartvoip costs) then just die out.

By the way I am already using smartvoip for all my local, long distance and cellphone calls. and am really angry I still have to pay telkom R131 per month for a service I do not use.
 
Why must the industry be given till 2012 to get their interconnection fees down to an acceptable level. This must be done by 1 November 2009.
It is a well known fact that Vodacom and MTN colluded to squeeze out competition (Cell C) by raising their interconnection in one foul swoop.
Therefore they must bear the consequence of their action and not cry about a loss of profits. They have scored handsomely for many years!
Telkom also profited handsomely by virtue of their share in Vodacom. I am sure that they will now support a flat rate interconnect fees of around 25c to assist them in getting their own 3G enabled cellular network off the ground.
This added incentive will naturally have to come at a cost to their fixed line network, as they will have to substantially reduce fixed line costs to fairly balance their gains.

The above does not take into account the valid proposals in the posts of this thread, and must be read in conjunction with them.

I agree that this forum should put forward a strong message to the DOC.
 
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