Telkom explains new call rates

Debbie2 said:
Are there any further comments anyone would like to make on Telkom's proposed rates? If I were to summarise the overall feelings-

1. The rates are confusing for the average consumer. We are moving into a space now where it is going to be difficult to tell the price of a call based on the number dialled.
2. The rates to USALs are excessive. USALs are competitors to Telkom in specific areas of the country where there is less than 5% fixed-line penetration. These are rural areas, and the consumers served here tend to be amongst the poorest in the country. Telkom's high rates to USALs should be lower in the interests of universal access goals.
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Even worse, these underserviced areas were supposed to be serviced by Telkom and the reason why their monopoly was allowed to drag on. Not only did Telkom FAIL and fail miserably in meeting their mandate, they are now making it impossible for USAL's who are stepping up to the plate Telkom procrastinated on to do successfully what Telkom never would.

3. The rates to Neotel are too high and will undercut the new entrant, and this will likely stifle the uptake of Neotel's fixed-line services. Why is there no Telkom to Neotel off-peak rate?
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This is clearly the goal of the rates, despite of what Wayward Hayward says about Telkom 'welcoming competition'. This is more like laying in ambush for competition and hitting them with a club and stealing their valuables.

I don't see the point of profit on interconnect charges, except as some sort of archaic old-boys club. It raised the minimum cost and enforces a default cartel. Interconnection fees MUST be cost-based. All it allows our 'noble' competition-welcoming incumbent to do is make a profit on Neotel's growth. It's a win-win for them, no matter who gets the business.

And the consumer only loses, because Neotel has no choice but to pass that stupid, stupid (hear that Hayward? STUPID!!) cost on to consumers. Neotel MUST terminate calls on Telkom's network, and when Telkom can name the price of that termination: that's like printing your own money.

4. There is a concern that challenging the proposed rates will lead to further delays in getting the applicable number ranges operational. It is in the best interests for competition that these number ranges become operational as soon as possible, and a challenge to the proposed rates could cause unwanted delays which will be costly for Telkom's competitors.
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This is one of the most idiotic things I've heard from someone who is NOT from Telkom. Competitors should tell ICASA why the rates should not be approved, so that they are NOT approved. In terms of ICASA's recently gazetted regulations, it seems they are already leaning in this direction and maybe a little persuasion won't be wasted.

You cannot allow Telkom to go ahead with these rates. Once they're there, you won't get rid of them. Instead of sucking up the rates because their absence is holding back competition, ICASA should tell Telkom which rates they may use and then go ahead and open the market anyway so that there's no delay. It's high time ICASA lays the smack down. Government has been taking such a keen interest in regulatory matters lately, I think we're in for some exciting things in this area soon.
 
... oh, and by the way, on the cost-based thing: WTF are the Telkom management accounts, requested by ICASA ALMOST A YEAR AGO??
 
Thanks for your detailed comments Juice.

I personally agree that the proposed rates should be challenged, regardless of any delays that may result. I agree that once these rates are in place they will never be revised downwards. It certainly is time ICASA stood up to Telkom.

On a related note, it's time for consumers to start getting involved in the formal processes again. This means keeping abreast of new regulations etc and making comment on them to ICASA both as individuals and as consumer groups. Teasing out the issues involved and putting your opinions across on the forums is important.
 
The whole situation would be resolved if ICASA decreed that the rate for interconnect is zero.

If a telco decided that this was unfair, they could remedy the situation by increasing their own call charge. Of course that this may result in their loss of clients is their problem.
 
4. There is a concern that challenging the proposed rates will lead to further delays in getting the applicable number ranges operational. It is in the best interests for competition that these number ranges become operational as soon as possible, and a challenge to the proposed rates could cause unwanted delays which will be costly for Telkom's competitors.
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Reminds me of Mbeki's approach to Nigerian elections (or sa gubs attitude to zim)... we will approve because to do anything else leads to public disorder (no matter how wrong or messed up it is.)
 
Wasn't there talk that geopgraphic number portability comes into operation around this time? If that is the case then the distinction between local and national calls will make no sense at all.
 
risingtide said:
Wasn't there talk that geopgraphic number portability comes into operation around this time? If that is the case then the distinction between local and national calls will make no sense at all.
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hmmm, interesting point. Guess smellkom will just make everywhere long distance then.
 
bekdik said:
The whole situation would be resolved if ICASA decreed that the rate for interconnect is zero.
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This makes the best sense that I've seen on this forum. The same for Cell networkings too. This simplistic logic will sort it once and for all. :)
 
the people don't care telkom, you are too expensive!
 
risingtide said:
Wasn't there talk that geopgraphic number portability comes into operation around this time? If that is the case then the distinction between local and national calls will make no sense at all.
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From Neotel's website

Will I be able to keep my Telkom number when I switch to your service?

Geographic number portability regulations have already been introduced by ICASA, and fixed-line operators are required to ensure that their networks have the capability to provide number portability for block numbers within two months of the launch of Neotel's services, and for individual number portability in February 2007, well in advance of the introduction of Neotel`s services. These time-lines are in-line with Neotel's proposed services for the different customer segments. Neotel's network is being deployed to be geared to handle number portability, and customers can therefore expect to be able to retain their existing fixed-line numbers when switching to Neotel
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