Telkom copper network spin-off

several ISPs (all of the MNOs who are also ISPs) can already lay and run there own cables - your IECNS licence holders are all able to do this they simply aren't because the costs are prohibitive.
 
Roman4604 said:
I think you missed my main point.

If LLU does come to pass and say Neotel release direct DSL services that are roughly at the same price as Telkom, its going to be greeted with a fat yawn. Their potential to significantly reduce pricing will be related to the wholesale price of unbundled lines, which if you believe Telkom will actually rise compared to current levels due the access deficit being passed on instead of cross subsidised within Telkom.
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That's why it should be full LLU or nothing. There should be an audit to determine cost price and value. The two aren't necessarily the same. Telkom wants a hefty fee just to activate an existing line while even a small sum would be preferable to it just depreciating. There needs to be a price point that will leverage new customers against the loss from existing customers. I don't buy the deficit excuse and selling off the network won't solve it in any case.

Paul Hjul said:
several ISPs (all of the MNOs who are also ISPs) can already lay and run there own cables - your IECNS licence holders are all able to do this they simply aren't because the costs are prohibitive.
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That's why the costs should be shared. LLU has worked in the past because that's where the demand was. Things have changed. It's now the ducts themselves that have become the most valuable asset.
 
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antowan said:
Ffs! I wish all the smart ass banter would just stop! Implement LLU and make it open season to all ISPs to run cables of whatever the **** kind they want! All this "oh no we cannot do that..." Bull**** will end in the blink of an eye the moment the first ****er picks up a shovel to run that first non telkom or neotel cable of copper or fibre! It will be bloody open season on fixed line! Mark my words!
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Be careful what you wish for.

If there really is an ALD, this initiative could easily result in DSL pricing going UP.
 
except for the fact that the assets in question have already been severely impaired and that impairment hasn't worked its way into the ALD calculations
 
MickeyD said:
Those numbers are given to ICASA every single year...
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The cost of running the copper specifically or just the normal breakdown of operational cost vs income?
 
of course most of the figures are in the annual report etc ... as well

Telkom is a public listed company etc ... External auditors, no disclaimers that I can recall
ICASA and the DoC on the other hand ...
 
Sell all the copper to China and replace with fibre - :p:p
 
antowan said:
Ffs! I wish all the smart ass banter would just stop! Implement LLU and make it open season to all ISPs to run cables of whatever the **** kind they want! All this "oh no we cannot do that..." Bull**** will end in the blink of an eye the moment the first ****er picks up a shovel to run that first non telkom or neotel cable of copper or fibre! It will be bloody open season on fixed line! Mark my words!
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Sounds great in theory but its quite a bit more complex in reality. Personally I believe time for large scale utilisation of traditional LLU has passed by. Here's why;

- LLU is only probable in the top 'hot' exchange areas (at least initially). None of the other fixed line providers/operators can even come close to matching Telkom in resources/reach on the ground.

- Duct sharing is impractical, the risk of inter provider/operator service distribution is too great.

- Many providers/operators are already investing in FTTP in the 'hot' areas (mainly for business currently).

- By the time LLU is available, Telkom will most likely be servicing most 'hot' areas from the sub loop (i.e. MSANs).

So the dilemma for the provider/operator then becomes is it worth the cost/time/bureaucracy to enable 'hot' exchanges? Is it worth diverting fibre rollout investment for this purpose? Is it worth bringing to market inferior services? Doesn't sound very appealing to me.

Still I believe the structural separation of the copper into a commerical SPV has merit, even if the majority customer remains Telkom. It will unclutter the costs involved and provide transparency to the industry (& potentially the market). More importantly it provides an unambiguous entry point for government to subsidise the cost of fixed line communication should they be truly interested in accelerating economic development.
 
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