LLU: Access line deficit

[ellipsis]

In the event that an access line deficit is identified, would you be willing to contribute to an access line deficit recovery scheme?

This is one of the questions posed in the LLU Discussion Document. Please give us your feedback.

A write-up will follow shortly, for your better understanding of the question.

 

[ToxicBunny]

There would have to be a very solid business reason to justify the access line deficit in my opinion.

I'm pretty sure Telkom do have one, but whether its due to their chinese accounting, or complete inefficiencies will need to be determined if you ask me.

Also a recovery scheme would need to be explained in terms of what and how it works, simply due to it sounding (in a way) like a new avenue for someone to gain revenue from.

 

[MickeyD]

There would have to be a very solid business reason to justify the access line deficit in my opinion.

I'm pretty sure Telkom do have one, but whether its due to their chinese accounting, or complete inefficiencies will need to be determined if you ask me.

Also a recovery scheme would need to be explained in terms of what and how it works, simply due to it sounding (in a way) like a new avenue for someone to gain revenue from.

They determine the ALD via the COA/CAM using CCA (Current Cost Accounting):

(COA/CAM) for Public Switched
Telecommunication Service (PSTS)
Operators Volume 3
COA/CAM for PSTS operators was finalised in July 2002, and Telkom submitted its first set of audited Regulatory financial statements in September 2004. The said financial statements were prepared on the historic cost basis. In terms of the existing regulations, Telkom is expected to submit to the Authority, six months after its financial year end, the audited Regulatory financial statements which are prepared on the Current Cost Accounting (CCA) and the Long Run Incremental Cost (LRIC) methodologies. Telkom is therefore expected to submit LRIC regulatory financial statements by 30 September 2006.

With the application of COA/CAM regulations, ICASA will be equipped to determine the following:
• Ensure that operators do not exploit market power to earn excess monopoly profits;
• Ensure that operators do not engage in predatory pricing;
• Ensure that operators do not engage in anti-competitive crosssubsidisation;
• Ensure that operators do not price on an unduly discriminatory basis;
• Ensure that prices are cost orientated and sufficiently unbundled;
• Protect consumers by monitoring and approving tariffs and pricing regimes; and
• Monitor the financial status of operators.

Quote from ICASA doc...

 

[grok]

If it's going to cost me more for internet, no!

 

[ToxicBunny]

Yup, I'm vaguely aware of the COA/CAM stuff... still doesn't fill me with confidence that we're saying there is an Access Line Deficit based on Telkoms own numbers.

 

[Countrytwang]

Hmmm, don't really want to be paying any more money haha.

 

[MickeyD]

Hmmm, don't really want to be paying any more money haha.

Please explain your rationale?