Sign up with GoogleA tale of twisted lines: Telkom's ADSL saga
August 03, 2005, 14:15
http://www.sabcnews.com/sci_tech/telecomms/0,2172,109629,00.html
By Thrishni Subramoney
It's all a case of crossed lines or twisted ones to be exact. The high-speed internet access that Telkom facilitates with a pair of twisted copper wires (better known as an Asymmetric Digital Systems Line or ADSL) has fallen under a damning spotlight in the Independent Communcations Authority of South Africa's (Icasa) findings report on the service.
Too expensive, too limiting and badly serviced. If a 41-page report crammed with technical nuances can be summarized into three points that would be the shortest and most severe version of the document which has raised the hackles of the national operator so much that it has threatened legal action. The report is based on four days of public hearings into complaints that 46 ADSL users brought against Telkom.
Exorbitant prices
Rudolph Muller, one of the complainants, a founder of MyADSL (a website dedicated to ADSL issues) and a lecturer in Business Information Technology at the University of Johannesburg, says the crux of their argument was that Telkom is overcharging for services that are easily affordable overseas. The most questionable charge he said was the monthly charge for the twisted copper ADS line. MyADSL says that there should only be a once-off fee for the line and not the high monthly access charges.
"Access charges are really unique to South Africa, nowhere else in the world do we see this trend. Generally overseas we see local loop unbundling where Internet Service Providers (ISPs) compete on an equal footing and there is only one charge where you get ADSL," he said.
Unacceptable report
Telkom has countered the findings though, saying that they are "unacceptable". Xolisa Vapi, a spokesperson for Telkom, adopted a battle stance on the issue, saying that they will do their utmost to fight against the recommendation - that Telkom re-visit access charges - being turned into regulation.
"We are shocked by the Icasa-ADSL report which recommends abolishing the monthly ADSL access rentals. It costs a lot of money to build the ADSL network and to maintain it. We will do everything in our power (to oppose the findings). We will use diplomatic means and if push comes to shove we will take legal action to protect our investment," Vapi said. Vapi was quoted in newspapers as saying that Icasa didn't understand the issues at stake when publishing their findings. A charge that the regulator has not taken kindly to.
Blanket statements
Mamodupi Mohlala, the chairperson of the committee that looked at ADSL, has defended the findings against Telkom's criticism. "Look," she said sounding galled by the suggestion that Icasa had not fully analyzed the case, "Telkom is making a very blanket statement and they are not referring to the specifics. They must specifically refer to what context they say we don't understand the issues. Because we have clearly come up with a properly reasoned document with all the arguments on the table," she said.
The report also found that high Telkom ADSL tariffs were preventing the natural progression from dial-up internet access to broadband - a trend that is apparent overseas. Complainants say that this is limiting the number of people who can use the service. Vapi says prices will come down. As soon as more people use the service. So why not bring down prices in order to facilitate this waiting tide of new subscribers?
Economies of scale
"Well, yes," Vapi amends, "Our ADSL is in line with economies of scale. The more people subscribe the further prices will come down, and then even more people will subscribe." If this "economy of scale" is left alone, he envisions South Africa having a "bright broadband future". But if Icasa's findings translate into similar regulations he says more ominously, "Telkom may be forced to re-look at their investment strategy regarding ADSL roll-outs and this may affect South Africa's ability to bridge the digital divide." If this is the route Telkom takes, it may not be a long time coming.
Mohlala says the next step is to hold a regulations-making process that might just force Telkom's hand in making those pricing changes. It's not a done deal though, she says. "We will put our out our draft regulations for 30 days. This will be a public process. There will be a public hearing should any party request a public hearing. Thereafter we will come up with a final regulation which will be binding," she said.
Audio Clips (I couldn't get these to work but maybe you can)
Richard Muller, a founder of MyADSL, explains one of MyADSL's complaints against Telkom
Vapi says the findings are shocking
Xolisa Vapi, a spokesperson for Telkom, explains Telkoms 'economy of scale'
Mohlala defends Icasa's report
Mamodupi Mohlala, the chairperson of the ADSL committee, explains Icasa's next step
August 03, 2005, 14:15
http://www.sabcnews.com/sci_tech/telecomms/0,2172,109629,00.html
By Thrishni Subramoney
It's all a case of crossed lines or twisted ones to be exact. The high-speed internet access that Telkom facilitates with a pair of twisted copper wires (better known as an Asymmetric Digital Systems Line or ADSL) has fallen under a damning spotlight in the Independent Communcations Authority of South Africa's (Icasa) findings report on the service.
Too expensive, too limiting and badly serviced. If a 41-page report crammed with technical nuances can be summarized into three points that would be the shortest and most severe version of the document which has raised the hackles of the national operator so much that it has threatened legal action. The report is based on four days of public hearings into complaints that 46 ADSL users brought against Telkom.
Exorbitant prices
Rudolph Muller, one of the complainants, a founder of MyADSL (a website dedicated to ADSL issues) and a lecturer in Business Information Technology at the University of Johannesburg, says the crux of their argument was that Telkom is overcharging for services that are easily affordable overseas. The most questionable charge he said was the monthly charge for the twisted copper ADS line. MyADSL says that there should only be a once-off fee for the line and not the high monthly access charges.
"Access charges are really unique to South Africa, nowhere else in the world do we see this trend. Generally overseas we see local loop unbundling where Internet Service Providers (ISPs) compete on an equal footing and there is only one charge where you get ADSL," he said.
Unacceptable report
Telkom has countered the findings though, saying that they are "unacceptable". Xolisa Vapi, a spokesperson for Telkom, adopted a battle stance on the issue, saying that they will do their utmost to fight against the recommendation - that Telkom re-visit access charges - being turned into regulation.
"We are shocked by the Icasa-ADSL report which recommends abolishing the monthly ADSL access rentals. It costs a lot of money to build the ADSL network and to maintain it. We will do everything in our power (to oppose the findings). We will use diplomatic means and if push comes to shove we will take legal action to protect our investment," Vapi said. Vapi was quoted in newspapers as saying that Icasa didn't understand the issues at stake when publishing their findings. A charge that the regulator has not taken kindly to.
Blanket statements
Mamodupi Mohlala, the chairperson of the committee that looked at ADSL, has defended the findings against Telkom's criticism. "Look," she said sounding galled by the suggestion that Icasa had not fully analyzed the case, "Telkom is making a very blanket statement and they are not referring to the specifics. They must specifically refer to what context they say we don't understand the issues. Because we have clearly come up with a properly reasoned document with all the arguments on the table," she said.
The report also found that high Telkom ADSL tariffs were preventing the natural progression from dial-up internet access to broadband - a trend that is apparent overseas. Complainants say that this is limiting the number of people who can use the service. Vapi says prices will come down. As soon as more people use the service. So why not bring down prices in order to facilitate this waiting tide of new subscribers?
Economies of scale
"Well, yes," Vapi amends, "Our ADSL is in line with economies of scale. The more people subscribe the further prices will come down, and then even more people will subscribe." If this "economy of scale" is left alone, he envisions South Africa having a "bright broadband future". But if Icasa's findings translate into similar regulations he says more ominously, "Telkom may be forced to re-look at their investment strategy regarding ADSL roll-outs and this may affect South Africa's ability to bridge the digital divide." If this is the route Telkom takes, it may not be a long time coming.
Mohlala says the next step is to hold a regulations-making process that might just force Telkom's hand in making those pricing changes. It's not a done deal though, she says. "We will put our out our draft regulations for 30 days. This will be a public process. There will be a public hearing should any party request a public hearing. Thereafter we will come up with a final regulation which will be binding," she said.
Audio Clips (I couldn't get these to work but maybe you can)
Richard Muller, a founder of MyADSL, explains one of MyADSL's complaints against Telkom
Vapi says the findings are shocking
Xolisa Vapi, a spokesperson for Telkom, explains Telkoms 'economy of scale'
Mohlala defends Icasa's report
Mamodupi Mohlala, the chairperson of the ADSL committee, explains Icasa's next step
