Idea for another anti-Telkom advert

[Debbie]

Hi guys,

A lot has been happening in the telecoms space in the past few weeks. We had MTN slash their data prices and saw Vodacom rise to the challange, and even iBurst muttered something.

Two prominent, long-time Telkom execs resigned. First Wally Beelders, Chief Sales and Marketing Officer announced his resignation after an incredible 30 years with the beast. Then Thami Msimango (Chief Technical Officer) handed in his resignation after more than 20 years at Telkom.

Telkom signed on to become part of the EASSy cable: (http://www.telkom.co.za/minisites/ir/news/article_710.html). This has apparantly caused some strife between government and Telkom. According to Paul Vecchiatto of ITWeb:

This contract was severely criticised by the DOC's Shope-Mafole before the Parliamentary Portfolio Committee on Communications, saying: “It was outside the policy framework that had been set for Eassy.”

In terms of the Eassy policy, access would be on a non-discriminatory basis, while Molotsane has insisted that Telkom's participation would be on commercial principles.

Shope-Mafole also said that government would exercise its board power (it controls six out of the 10 seats) to ensure that Telkom would not get the required funding to play its part in Eassy.

(http://www.itweb.co.za/sections/telecoms/2007/0704052045.asp?O=FPLEAD)

Mbeki said that Telkom was "profiteering" and, in relation to data-transfer charges, that the charges "are absolutely phenomenal". He agreed "absolutely" when the interviewer mentioned that SA telecoms rates were "unbelievably high". With further regard to ADSL prices, he acknowledged that Telkom was charging "hundreds of percent more per unit of time than is being charged elsewhere in the world."
(See Financial Times' 'Interview with Mbeki': http://www.ft.com/cms/s/c5b97158-e12f-11db-bd73-000b5df10621.html)

Molotsane is out under undetermined circumstances, with some saying he walked out, others saying he was fired by Telkom's board (http://www.fmtech.co.za/telecoms/papi-molotsane-quits-telkom/). It's quite interesting considering government does technically control 6/10 Telkom board seats, and even more interesting given that government has been murmuring about Telkom's actions with regard to EASSy this week (see http://www.itweb.co.za/sections/telecoms/2007/0704021100.asp?A=WAG&O=W).

Telecoms is in the spotlight again. Molotsane's exit is quite sudden and still under mysterious circumstances. Telkom's board (where government control 6/10 seats) are looking for a new CEO.

Considering Mbeki's Telkom comments made business news this week, and Molotsane's making front page mainstream news, what about a short, full-paged advert somewhere saying the following:

President Mbeki, you recently agreed that Telkom was "profiteering" at the expense of the South African consumer. Your own words were that some of Telkom's charges were "absolutely phenomenal", and that in regards to ADSL access costs, Telkom were charging "hundreds of percent more per unit of time than is being charged elsewhere in the world".

If you are serious about bringing down the price of telecommunications, then
-unbundle the local loop
-force Telkom to provide cost-based access to SAT-3
-direct ICASA to re-adjust the productivity factor in the Price Regulations to a value greater than 10%, with effect from August this year
-speed up interconnection agreements
OR
-relinquish government's majority shareholding in Telkom.

The time for rhetoric is over. Please show us you're serious about enabling affordable communications, and take concrete actions.

I haven't spoken to TAG about this (richardf what do you think?) I was just thinking it would be a good time to get something like this out. Would you contribute to something like this, or do you think it'd be a waste of money?

 

[ToxicBunny]

I'd give my 2c to something like that.... I think we need to keep the pressure on these ppl so they don't just brush it under the carpet like everything else.

 

[Tanarri]

This is not a very popular thread. I would blame it solely on the fact that South Africa's "Consumerism & Telecoms Liberalisation" has largely failed miserably.

President Mbeki, you recently agreed that Telkom was "profiteering" at the expense of the South African consumer. Your own words were that some of Telkom's charges were "absolutely phenomenal", and that in regards to ADSL access costs, Telkom were charging "hundreds of percent more per unit of time than is being charged elsewhere in the world".

If you are serious about bringing down the price of telecommunications, then
-unbundle the local loop
-force Telkom to provide cost-based access to SAT-3
-direct ICASA to re-adjust the productivity factor in the Price Regulations to a value greater than 10%, with effect from August this year
-speed up interconnection agreements
OR
-relinquish government's majority shareholding in Telkom.

The time for rhetoric is over. Please show us you're serious about enabling affordable communications, and take concrete actions.

I think this is a great idea and will certainly contribute. Two points:

"-direct ICASA to re-adjust the productivity factor in the Price Regulations to a value greater than 10%, with effect from August this year
-relinquish government's majority shareholding in Telkom."

The first I really don't understand. LOL
The second will never happen, because of the point of view of the government.

I agree 7000% (equal to what broadband is being overcharged at ) with the the relinquishing of shareholding. But when government sees the list, they might read it through and when they see the last point they say we are making unreasonable demands and discard it altogether.

I don't know how to go about this, since this is certainly needed (shareholding specifically). However, how to handle that huge thorn in the South African economy's backside - I do not know.

The first two points mentioned in the quote: I stand behind it firmly!

 

[Rikus]

I would financially contribute, yes.

 

[Debbie]

"-direct ICASA to re-adjust the productivity factor in the Price Regulations to a value greater than 10%, with effect from August this year
-relinquish government's majority shareholding in Telkom."

The first I really don't understand. LOL
The second will never happen, because of the point of view of the government.

I agree 7000% (equal to what broadband is being overcharged at ) with the the relinquishing of shareholding. But when government sees the list, they might read it through and when they see the last point they say we are making unreasonable demands and discard it altogether.

I don't know how to go about this, since this is certainly needed (shareholding specifically). However, how to handle that huge thorn in the South African economy's backside - I do not know.

The first two points mentioned in the quote: I stand behind it firmly!

Thanks Tanarri. Although it seems like the point is to get government to do at least one of the above things, it is not. The point would be to increase the perception that telecoms prices in SA are exorbitantly high, that Mbeki himself agrees that Telkom is "profiteering", and to raise the public pressure on decision-makers.

 

[eremos]

Thanks Tanarri. Although it seems like the point is to get government to do at least one of the above things, it is not. The point would be to increase the perception that telecoms prices in SA are exorbitantly high, that Mbeki himself agrees that Telkom is "profiteering", and to raise the public pressure on decision-makers.

And for that it will be good. I think though that all that is likely to happening is Mbeki restating his "commitment" to the issue and telling us not to worry, ICASA is on it.

Government is really good at talking, but they (and the media) have terribly short attention spans - tomorrow the next crisis takes over.