Justifying Telkom Line Rental

MielieSpoor

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Question: How can Telkom justify their line rental? Surely if they want to change their prices, they have to submit it to ICASA for apporval?

Telkom and MTN also charge a "line rental" fee called monthly subscription for the contract. But with Vodacom and MTN they provide you with a certain amount of free minutes and a handset of a couple of thousand rand.

The Weekender package at Vodacom sets you back R135.00 pm. They have a connection fee of R97.00 to get you connected.

As from August, Telkom will have a monthly fee of R111pm. Connection fee of R342.30 (current price).

With that you get nothing. If you need a handset, you need to pay them an extra few handred rand to actually use the phone. If you did manage to get a handset, then you cannot use the line as there is not minutes included in the package.

My question again...how can Telkom justify such rediculous cost????? There monthly charge is almost exactly the same as the mobile operators - which has got a much more expensive network to run. Their installation charge is tripple (almost 4x) that of the mobile operators...

It must only be in this country that you get better value from the mobile operators - which is supposed to be more expensive!!!!

How is it possible that Vodacom/MTN can give you a handset of a few thousand rand, carry the cost of your bundled minutes and maintain a flippen expensive netword and still show better result than the fixed line operator that don't include those minutes in their monthly bill, don't include a handset of thousands and neither main a exspensive network???

I don't understand this and most probably will never....
 
Well when I first joined this forum that's all I used to moan about. And it's true that it's a bogus cost. Other vountries have the cost built in to the falt fee. For example in the US the typical price for a broadband connection is $29.99pm and that is all inclusive, no other costs payable anywhere else to anybody else but part of that cost the telco uses to maintain it's network. If Telkom can just offer us a flat R250pm 4Mbps 100GB usage product pm and not tell us that so much is for this rental and so much is for that rental then that would be great, just give a flat fee product and don't charge TWICE for the same line!
 
From the ADSL regulations
2.1 The structure of an ADSL tariff shall comprise of an installation and bringing
into service charge, a monthly rental for provisioning and maintenance of
ADSL lines and a bandwidth charge.

From the ADSL findings
3.1.3.2 Secondly with respect to the issue of line access and usage charges: the Authority notes that Telkom submits that there was no separate pricing that they were aware of and/or alternatively that the international trend was not to separate charges. The presentation by MyADSL on this issue proposed a compromise that in the opinion of the Authority appears fair and capable of addressing the issue of separate costs. The proposal was that Telkom be entitled to charge a once off access charge and thereafter, charge only for line rental. The Authority believes in the interests of consumer protection and without further justification from Telkom for continued charges for access, that the charge for access only be levied once off at the inception of the service and thereafter charges be restricted to line rental only. This issue is integral to the costing of the service and shall be addressed by regulation by the Authority so as to ensure enforceability.
 
thank redhaedfan. But then, why do ICASA only act fearsom with regards to pay-tv and not against Telkom?? That means then that they are indirectly protecting Telkom...
 
Don't you mean 10GB, feo? Was that a typo or do you really mean 100GB? I don't think one can expect 100GB in the current telecoms climate.
Well considering that Canadian customers complain that Bell South cap them at 90GB I don't see why we can't just drop this stupid mentality of single digit caps. I mean we're the consumer and we have to push for something realistic, I mean it's 2007 and we can't be happy with the pathetic caps we're gettng. So to answer your question, yes I did intend to say 100GB. But when nobody is listening you can say whatever you like...:(
 
Did you read their fair use policy?

If your usage continues to be very high, we'll get in touch again. Ultimately, if your usage still remains excessive despite our attempts to help you reduce it, we may have to suspend your service and possibly close your account.
 
I know that, but considering that 90GB can get used up very quick considering the speeds they have there, they have a legitimate complaint for BS to up the cap to something more realistic for their situation. I mean heck, there were guys from Ireland complaining that they could "only" pull a couple HUNDRED gigs a month. :eek: So all I'm saying is lets drop this 1 and 2GB crap and demand Telkom provide us with a decent internet experience...;)
 
Question: How can Telkom justify their line rental? Surely if they want to change their prices, they have to submit it to ICASA for apporval?

Telkom and MTN also charge a "line rental" fee called monthly subscription for the contract. But with Vodacom and MTN they provide you with a certain amount of free minutes and a handset of a couple of thousand rand.

The Weekender package at Vodacom sets you back R135.00 pm. They have a connection fee of R97.00 to get you connected.

As from August, Telkom will have a monthly fee of R111pm. Connection fee of R342.30 (current price).

With that you get nothing. If you need a handset, you need to pay them an extra few handred rand to actually use the phone. If you did manage to get a handset, then you cannot use the line as there is not minutes included in the package.

My question again...how can Telkom justify such rediculous cost????? There monthly charge is almost exactly the same as the mobile operators - which has got a much more expensive network to run. Their installation charge is tripple (almost 4x) that of the mobile operators...

It must only be in this country that you get better value from the mobile operators - which is supposed to be more expensive!!!!

How is it possible that Vodacom/MTN can give you a handset of a few thousand rand, carry the cost of your bundled minutes and maintain a flippen expensive netword and still show better result than the fixed line operator that don't include those minutes in their monthly bill, don't include a handset of thousands and neither main a exspensive network???

I don't understand this and most probably will never....



I think the 2 main reasons for this:
  1. They are pretty much the only one who provides this service, and feel they can charge what they want to
  2. Are there "REALLY" any regulations in this country? And who REALLY bothers to follow ICASA's proposed regulations? ICASA isn't the law, and no one bothers much with them either
 
Question: How can Telkom justify their line rental? Surely if they want to change their prices, they have to submit it to ICASA for apporval?

Telkom and MTN also charge a "line rental" fee called monthly subscription for the contract. But with Vodacom and MTN they provide you with a certain amount of free minutes and a handset of a couple of thousand rand.

The Weekender package at Vodacom sets you back R135.00 pm. They have a connection fee of R97.00 to get you connected.

As from August, Telkom will have a monthly fee of R111pm. Connection fee of R342.30 (current price).

With that you get nothing. If you need a handset, you need to pay them an extra few handred rand to actually use the phone. If you did manage to get a handset, then you cannot use the line as there is not minutes included in the package.

My question again...how can Telkom justify such rediculous cost????? There monthly charge is almost exactly the same as the mobile operators - which has got a much more expensive network to run. Their installation charge is tripple (almost 4x) that of the mobile operators...

It must only be in this country that you get better value from the mobile operators - which is supposed to be more expensive!!!!

How is it possible that Vodacom/MTN can give you a handset of a few thousand rand, carry the cost of your bundled minutes and maintain a flippen expensive netword and still show better result than the fixed line operator that don't include those minutes in their monthly bill, don't include a handset of thousands and neither main a exspensive network???

I don't understand this and most probably will never....



I think the 2 main reasons for this:
  1. They are pretty much the only one who provides this service, and feel they can charge what they want to
  2. Are there "REALLY" any regulations in this country? And who REALLY bothers to follow ICASA's proposed regulations? ICASA isn't the law, and no one bothers much with them either
 
Question: How can Telkom justify their line rental? Surely if they want to change their prices, they have to submit it to ICASA for apporval?

Telkom and MTN also charge a "line rental" fee called monthly subscription for the contract. But with Vodacom and MTN they provide you with a certain amount of free minutes and a handset of a couple of thousand rand.

The Weekender package at Vodacom sets you back R135.00 pm. They have a connection fee of R97.00 to get you connected.

As from August, Telkom will have a monthly fee of R111pm. Connection fee of R342.30 (current price).

With that you get nothing. If you need a handset, you need to pay them an extra few handred rand to actually use the phone. If you did manage to get a handset, then you cannot use the line as there is not minutes included in the package.

My question again...how can Telkom justify such rediculous cost????? There monthly charge is almost exactly the same as the mobile operators - which has got a much more expensive network to run. Their installation charge is tripple (almost 4x) that of the mobile operators...

It must only be in this country that you get better value from the mobile operators - which is supposed to be more expensive!!!!

How is it possible that Vodacom/MTN can give you a handset of a few thousand rand, carry the cost of your bundled minutes and maintain a flippen expensive netword and still show better result than the fixed line operator that don't include those minutes in their monthly bill, don't include a handset of thousands and neither main a exspensive network???

I don't understand this and most probably will never....



I think the 2 main reasons for this:
  1. They are pretty much the only one who provides this service, and feel they can charge what they want to
  2. Are there "REALLY" any regulations in this country? And who REALLY bothers to follow ICASA's proposed regulations? ICASA isn't the law, and no one bothers much with them either
 
I think the 2 main reasons for this:
  1. They are pretty much the only one who provides this service, and feel they can charge what they want to
  2. Are there "REALLY" any regulations in this country? And who REALLY bothers to follow ICASA's proposed regulations? ICASA isn't the law, and no one bothers much with them either
After three times the same post, we got the message! :rolleyes: :D
 
Look forward to seeing what Neotel offer rental/bundle wise.

Wireless means equipment will have to be installed to people's homes which means subsidised equipment, high rental or contracts (dun dun dun).

Hopefully CDMA equipment isn't too expensive and they can make it transparent enough so users don't fiddle with it too much.
 
I know that, but considering that 90GB can get used up very quick considering the speeds they have there, they have a legitimate complaint for BS to up the cap to something more realistic for their situation. I mean heck, there were guys from Ireland complaining that they could "only" pull a couple HUNDRED gigs a month. :eek: So all I'm saying is lets drop this 1 and 2GB crap and demand Telkom provide us with a decent internet experience...;)

The only way to use up more than 90GB in a month is downloading tons of torrents/P2P etc... I think 20GB is a fair amount for any user or household, seeing as most people in Canada don't give a **** (honestly) about the 90GB cap, purely people who want to download the whole month are complaining.

That's the problem, Telkom are not going to provide for downloaders, unless they make it completely uncapped, so thats about all we can hope for. Any other network that provides high caps or uncapped will be flooded with guys downloading non stop all month and end up with a crappy service, see Sentech.
 
Hopefully CDMA equipment isn't too expensive and they can make it transparent enough so users don't fiddle with it too much.

Please this is old technology already. Its been used since 2004. They can no doubt get the user equipment very cheaply.

The equipment and installation, even if ridiculously overcharged, will still be cheaper than Telkom's installation.
 
The only way to use up more than 90GB in a month is downloading tons of torrents/P2P etc... I think 20GB is a fair amount for any user or household, seeing as most people in Canada don't give a **** (honestly) about the 90GB cap, purely people who want to download the whole month are complaining.

That's the problem, Telkom are not going to provide for downloaders, unless they make it completely uncapped, so thats about all we can hope for. Any other network that provides high caps or uncapped will be flooded with guys downloading non stop all month and end up with a crappy service, see Sentech.
Yip, I know it was the torrenting bunch of them that complained but what I'm trying to say is that Telkom should offer at least a 20GB limit for us, as you also correctly point out. Theres no way anyone can survive on 1 GB a month unless they just browse and email like grandma...:)
 
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