Settlement: Dotco vs Telkom

D

deepthroat

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Just got the following email ...

Dear "All You Can Eat" client,

Dotco is pleased to announce that the litigation between itself and Telkom has been settled out of Court this morning. On 28 April we advised our customers that our 30GB "All You Can Eat" ADSL accounts would be ending on 31 May as a result of our existing contract with our wholesale service provider expiring in May.

The latest wholesale ADSL agreements offered to service providers are structured on a pay-per-usage basis. We hope that the ICASA ADSL hearings scheduled for later this month will pay close attention to our customers' needs which we have previously communicated to the Authority.

We will continue to look for the best ways to bring affordable internet services to the market and would like to thank our customers for their loyal support since October last year when we indicated our opposition to introduce new pricing for ADSL on 1 November 2005.

Yours truly,

The DOTCO "All You Can Eat" team
Click to expand...
 
So that pretty much means "Although nothing has been decided, you're still going to get screwed but we're pleased to announce that nothing will continue to be decided with reference to nothing."

WOOT.

I don't mean on DOTCO's side... just Telkom. How has this changed anything at all?
 
Settled out of court? That is NO fighting!!!! that is pathetic!!!!!!!! No ISP is bold enough for taking on the TELKOM GIANT!! They ate AYCE for breakfast... If you can't fight them - join them... So from now on I will join the GIANT.
 
[confused]

What was the result of the settlement? I see nothing in terms of AYCE continuing their 30GB package?

Was it a case of Telkom agreeing to stop if AYCE stops? Or did Telkom give up something?

[still confused]
 
I would have settled aswell!! They had a real possibility of losing everything!! He had 14 months of making +-R500 per customer * probably a couple af 1000 users!
You all thought he had a court case to defend ADSL pricing!!
 
Our legal system allows for the giants to kill the small ones with legal costs.

Telkom's shareholders won't mind spending a few million on a case if it safeguards the future of super inflated rates.

Anyone here prepared to wager a few million to counter that?
 
So is that mean they will stop the 30g from june? what will they do for the existing 30g customer? will it convert to 10g user?
 
DOTCO's contract with Telkom set bandwidth cost at X amount. When Telkom changed the prices in November, DOTCO refused to change, and took them to court. Fast forward to May...

The original contract, the one they're fighting about, expires at the end of the month so rather than keep fighting, they've come to a settlement that probably sais something like:

1. Telkom honors the old prices through Nov-May;
2. DOTCO will start using the new prices as of June.

:rolleyes:
 
fewl said:
DOTCO's contract with Telkom set bandwidth cost at X amount. When Telkom changed the prices in November, DOTCO refused to change, and took them to court. Fast forward to May...

The original contract, the one they're fighting about, expires at the end of the month so rather than keep fighting, they've come to a settlement that probably sais something like:

1. Telkom honors the old prices through Nov-May;
2. DOTCO will start using the new prices as of June.

:rolleyes:
Click to expand...
I think you are right on the money, fewl. :D
 
I wish we could hear from DOTCO on this... Would be great to hear it from the horses mouth so to speak.
 
AntiThesis said:
I wish we could hear from DOTCO on this... Would be great to hear it from the horses mouth so to speak.
Click to expand...
Agreed.
Until then it is mere speculation.
Dotco and Telkom may have agreed to keep things under wraps?

Dotco is small change compared to Telkom, which means Dotco has a lot more to lose?
The owners of Dotco still need to survive and their attorneys have probably advised them that a bird in the hand is worth two in the bush?
 
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