News24: Telkom's ADSL Threat

[arf9999]

http://www.finance24.com/articles/default/display_article.asp?Nav=ns&ArticleID=1518-24_1748196

 

[GavinMannion]

Isn't it about time some of the Political parties in this country start coming to the party.

I think MyADSL has done a fantastic job in getting this to the point that it is but the heavy weights need to start joining the fight now.

Telkom is a huge beast and will ride shotgun over everyone unless either the legal system or the political system get involved. I think they are the only ones who can strong arm Telkom.

If Telkom pulls ADSL (highly unlikely) it would cripple this countries already struggling IT sector.

Telkom cannot be allowed to dictate how and when regulations are implemented.

Cheers,
Gavin

//Long time lurker

 

[nocilah]

i can not believe the gaul of telkom to say such things... with such profits they still want the public to belive they have not recouped investment....

steven white MUST BE FIRED!!!!

 

[VQuest]

RPM, I think it's time for you to make an appointment with the President

 

[kifoth]

"You also have investors and shareholders to consider and 100 000 customers you are serving. What do you say to them?

"You close down because you are not allowed to recover the R1bn you have invested?"


Let's break out the old calculator here

R1 000 000 000 invested

:divided by:

100 000 users

:equals:

R10 000 per user

:charging R300 per month gives us:

R1 080 000 000 over 3 years, after which its profit all the way.

Telkom can charge R300 a month for ADSL, increase its user base (and profit) dramatically in the process, and still recover its costs in less than 3 years if ICASA wins this.

Steve's key phrase here is "investors and shareholders to consider". They are going to recover their costs (in buckets), its just that they care more about their shareholders than their users.

 

[arf9999]

"You also have investors and shareholders to consider and 100 000 customers you are serving. What do you say to them?

"You close down because you are not allowed to recover the R1bn you have invested?"


Let's break out the old calculator here

R1 000 000 000 invested

:divided by:

100 000 users

:equals:

R10 000 per user

:charging R300 per month gives us:

R1 080 000 000 over 3 years, after which its profit all the way.

Telkom can charge R300 a month for ADSL, increase its user base (and profit) dramatically in the process, and still recover its costs in less than 3 years if ICASA wins this.

Steve's key phrase here is "investors and shareholders to consider". They are going to recover their costs (in buckets), its just that they care more about their shareholders than their users.

I don't believe that they have spent 1Billion purely on ADSL. They have probably spent R1Bn on their ATM network but they're using it for voice as well...

 

[Buddha]

how DARE they evern suggest that?!?!?!

i swear telkom has been going to mugabe's school of dictatorship!

fuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuck!

-buddha

 

[Syzygy78]

Telkom are TRUELY displaying what kind of company they are.

They need to deregulate the entire industry now!

Syzygy

 

[TMoose]

"You also have investors and shareholders to consider and 100 000 customers you are serving. What do you say to them?

"You close down because you are not allowed to recover the R1bn you have invested?"


Let's break out the old calculator here

R1 000 000 000 invested

:divided by:

100 000 users

:equals:

R10 000 per user

:charging R300 per month gives us:

R1 080 000 000 over 3 years, after which its profit all the way.

Telkom can charge R300 a month for ADSL, increase its user base (and profit) dramatically in the process, and still recover its costs in less than 3 years if ICASA wins this.

Steve's key phrase here is "investors and shareholders to consider". They are going to recover their costs (in buckets), its just that they care more about their shareholders than their users.

ADSL started way back in 2001 here (correct me if I'm wrong). They've already had almost 4 years to recoup any costs that they had.

How does it make sense that they can have R6.8bn profit, and somehow can't think of a way to recoup their investment? Hello? R6.8bn > R1bn. They recovered their investment almost 7x over just last year. Bastards.

 

[derekc]

they would never cancel adsl service because they invested so much money in it already...just a way to throw ICASA off and continue to rip us off

 

[duderoo]

"Icasa said elsewhere in the world, telecommunications firms do not charge a double levy. However, White claimed these companies merely bundle the costs and that consumers are still paying for both."

Ok maybe they do but they do not rip the public off in the process as I am in the Uk on a 2meg connection, unlimted downloads for £14.99 a month.....try doing that Telscum.

Also if you drop the prices to R200 -R300 a month the whole country would signup......typical business way of thinking, we need to recover the costs lets charge a wack of money, but then you won't have as many subs......charge a little and you will have a whole lot more.

 

[RoosTa]

This is why the DoC must open the market!

Telkom will take ICASA to court and then we must stand fast behind ICASA! I suggest we start raising funds for ICASA's "fight for independance", the same way we have done for Hellkom.

This would encourage ICASA to stand their ground!

 

[Jon Snow]

Telkom will never get enough pressure from the Gov. until they(the Gov) dont get any profits form Telkom, Simple.

Sad but true.

 

[GavinMannion]

There are plenty of political parties out there who are looking for a way to get publicity, the DA are desperate to implicate the ANC in corruption so should be very happy to point to all the links between the two organisations and try and drag them through the mud.

Politics is just publicity in disguise, what is the official view of our Shadow Technology minister? Maybe someone should try and get an official response from him/her in regard to this.

It's a sure fire way of getting a couple of thousand votes in the upcoming municipal election from the MyADSL users who now number over 5000?

Keep the pressure coming guys you are doing fantastic

 

[Kabal]

People we need to understand that until we get the SNO , we are stuck with melk-hom , and they know this aswell , so they can rape us as much/often as they like , until we get a choice . Ever watched national geographic ? Seen a lion take down an animal and get it teeth into it ? Note how the beast struggles , now notice melk-hom also struggling ?

Why ? Simple now that more people are becoming informed , the stronger we have become , those who abuse us have no choice now but to take notice , we are not corrupt , we do this for ALL of Sa , we dont earn huge salaries from telkom for doing nothing other than trying to find new ways to screw the people over . Sorry i am just have a "I cant believe this BS" day . The end is near for telkom they are trying their best to milk us for as long as possible , but thanks to ICASA it will be over much sooner that they hoped for !

Viva ICASA Viva!!

The quote of the week has got to go to Steve White .

“It is not fair to single us out; there is competition in broadband market,” he said.

 

[GavinMannion]

CONGRATULATIONS TO THE IFP FOR THEIR QUICK RESPONSE

IFP COMMUNICATIONS DIRECTORATE

PRESS STATEMENT August 3, 2005

SUZANNE VOS MP svos@iafrica.com 083 303 0451

INKATHA FREEDOM PARTY - Spokesperson:

Telecommunications/Broadcasting/Postal Services ______________________________________________________________

Telkom's attack on the country's independent communications regulator, ICASA, and its threat to launch legal action as well as to scrap plans to upgrade the country's high-speed network cannot go unchallenged.

It is common cause that the costs of high-speed internet services (as well as ordinary fixed line telephony) in South Africa are "exorbitant" (now stated by ICASA) and an inhibitor to economic growth. Telkom disputes this.

That is to be expected.

However, ICASA has every right to comment on the industry as it sees fit.

It has chosen to criticize the pricing of Telkom's high-speed internet services. That is its job.

The Minister of Communications, representing the Government's shareholding in Telkom -- let alone South Africa's policies and programmes with regard to a declared national imperative to boost broadband outreach -- would be well advised to step in and to bluntly (and with the considerable means at her

disposal) attempt stop these bully-boy tactics in their tracks. ICASA cannot afford a costly legal battle and neither can the country.

In any democracy tensions between the public and private sectors and statutory organs designed to regulate independently and in the best interests of all industry players and citizens in general are healthy. In fact, independent regulation goes to the heart of growth and economic development and in building healthy and vibrant competition.

However, the buck has to stop with "somebody" and that somebody has been declared by Parliament to be the Independent Communications Authority of South Africa (ICASA). Parliament and the people of South Africa have entrusted ICASA to regulate this industry. It is simply outrageous that Telkom has made the threats it has and in such a manner.

Threats of crippling legal action against ICASA's decision-making and national economic sabotage (which would be the result of severing existing ADSL lines and disinvesting in upgrading ADSL networks) cannot be allowed.

Of course recourse to law is a constitutional right but citizens have rights too and it is now up to Parliament and its elected representatives to constructively protect those rights. Telkom's threats, if seen through, could have long-term and disastrous economic consequences for the country.

Telkom has for too long been able to use its monopoly muscle to cripple and often crush its competitors. It has entangled ICASA in costly legal action since its inception.

No matter how much Telkom may regret and allege the "technical ignorance" (as reported) of ICASA, it is then up to all parties to make sure all their facts are right.

If, indeed, Telkom's high-speed costs are not "exorbitant", as alleged by ICASA and users in general, then let us all have some transparency on the issue. ICASA must be enabled to examine the facts as they really are and not as Telkom would like them to be reflected.

The IFP has long recognised that ICASA lacks capacity. It may well be the case, now, that in respect to its analysis of Telkom's pricing, it needs to do some more homework and needs to be given more resources to more thoroughly examine the issue.

ICASA's report recommending that Telkom should charge a one-off fee for installing high-speed services has resulted in a highly emotive response from Telkom. Words like "obscene" and "we'd... be forced to pull the plug on the whole service" (if ICASA's decisions were implemented) smack of hysteria and are unbecoming of an incumbent of the size and nature of Telkom.

ends statement

Come on people keep the pressure going now