Telkom plans uncapped local bandwidth

Hi Guys,

Seeing a lot of anger towards the changes coming ahead, luckily this is not (at least not yet) a change that every ISP is likely to make, purely because the way in which it is priced makes it difficult to impossible to construct affordable or fixed-price accounts (as an example, if we wanted to stay within the regulatory framework then we would have to do away with any fixed pricing on our ADSL and charge users for any additional usage beyond their "international portion of cap") - the regulation, in the context of Telkom's interpretation thereof, is completely unreasonable and unworkable, and only serves to harm the consumer in the end.

Luckily, the current way of pricing/dealing with access is still available to us and other ISP's, and I'm pretty sure that until this gets sorted between SAIX and ICASA you're not going to be seeing much in the way of changes.

That said, there is still one huge problem with this whole configuration of Telkom, it solves only one SMALL problem of the regulation we're talking here ("local bandwidth shall not be subject to the cap") and that is, how do we as ISP's provide for the ability for us to switch a single username to shaped, unshaped or local only without requiring a username change (as in the past shaped, unshaped and local only is determined by the name of the DSL realm your account is on - the bit after the @ sign - and the 3 different types of access needed 3 different realm names). Telkom has now solved that, and is providing that to ISP's come November.

What it doesn't do is stop local access from using your initial 3 or 4 or 10GB's of international bandwidth, which, from how I understand the regulation SHOULD read, is what should be happening. That isn't and local access still eats away at your international portion of cap, after which, we as ISP's have a choice, do we cap the user (as normally happens now) or do we set the user to local only (and we get charged local rates per GB). We're currently opting to keep our current products using the former, and looking at how we can build additional products with the additional option(s) we've now been given.

If we wanted to stick to what everyone feels the spirit of the regulation should be (where you don't get charged for additional local usage, and local usage is "uncapped") we would have to factor a certain amount of local GB's into the cost of our fixed cost accounts, even if we only factor in an additional 27GB of local on to a 3GB account, it means that 3GB account which costs you currently R199 will have to end up costing you R500-odd, an increase of nearly a factor of 3 - clearly this is both unreasonable and unfeasable given the way the ADSL market works.
 
Hmmm. That sucks Richard.
Thanks for letting us know about the situation from your side. Could you post any new things that you guys at WA come up with, just to keep us informed?

Coz we gets nothing from Neotel and the like. So we are completely in the dark
 
We'll keep everyone informed on any developments that may come up in the coming weeks/months. We expect it to be a bit of a battle initially, but they are walking a fine line regarding the regulation, I think given the wording they are just ever so slightly within it, but it's clear that the wording and the INTENTION of the law are two very different things, Telkom has gone one way (the way that naturally benefits themselves) and it's up to ICASA to clarify - whether they will or won't remains to be seen.

That said, ICASA's mandate is to protect the consumer, that's what a regulator does, the regulations as interpreted by Telkom serve merely to financially burden the ISP and subsequently the end user further than they currently do, ICASA has to step up and fix it and live up to their mandate.
 
Richard i have a question. What does local bandwidth cost you as an ISP?
Is it really that expansive that it will justify increasing a 3gig package from R199 to R500.
Or is that that you were selling the international at cost and you were making profits from the local?

Just want to get a better picture of how things work.
 
If I use an axxess prepaid 1/2/3Gb voucher, and use it all up, then I'll still be capped, because Axxess won't give me free local...

So it's misleading.
 
We all saw this coming when the vague regulations didn't state that local should also be free. ICASA is to blame for not being 100% clear on their stipulations.

The question is does local count towards the cap initially? If not then we can use unlimited local free up until the international limit is reached.
 
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BUT guys. It doesnt have to be free. How can you explain uncapped in any other way than: You pay X upfront, then you get un-restricted access?...

Paying more for the more you get (As Telkom is saying it is going to be) IS NOT UNCAPPED. Because we have that already!?!

For flip sakes man.
 
I dont see why Telkom doesnt just do a threshhold limit for local.
Lets face it, if the old system would return of the totaly uncapped local the infrastructure would be raped with all the dc+ and newsserver kiddies degrading the network.
Who remembers the good ol axxess 10gig accounts with unlimited local :P
Telkom as usual offers us something that sounds good but then we forget to read the fine print.
All i can say is make sure DU meter is doing its job when you decide to download locally!
 
I unfortunately cannot divulge our wholesale rates, what I can say however is that if we want to provide an additional 27 or so GB of local access it would justify an increase from R199 - approx. R500, that's with little in the way of profitability attached, if we were looking at still wanting to make a little bit off of that it would go a bit higher.
 
Richard i have a question. What does local bandwidth cost you as an ISP?
Is it really that expansive that it will justify increasing a 3gig package from R199 to R500.
Or is that that you were selling the international at cost and you were making profits from the local?

Just want to get a better picture of how things work.

It is not that much but again you can get some users who use more then others hence as ISP one must aggregate hence pushing the base prices up. But again this case hopefully will be unlikely. Although ISPA members are discussing and hopefully something will come out of all this confusion.

ISP's are as worried/confused as consumers are.
 
local bandwidth shall not be subject to the cap

What it doesn't do is stop local access from using your initial 3 or 4 or 10GB's of international bandwidth, which, from how I understand the regulation SHOULD read, is what should be happening.

I agree. telscum cannot offer you 1gig international and have that depleted by you using only local traffic.
 
local bandwidth shall not be subject to the cap
Also, this part only mentions a cap, not international cap or local cap. So it states that local should be free in essence as it can't contribute to the cap. They might charge you a flat fee per month, but not per Gb.

If it is implemented this way, it would make a lot of sense to split your traffic on your router (solution elsewhere on the forum). But then again, if I can do it on my router, my ISP should be able to do it too, right?
 
Having looked into this it is my opinion that Telkom cannot legally do this - more on why later, I have to do a call were Telkom have hard capped a business and dispite paying for more gigs their server is still of-line
 
from what i read it seems they reverting back to the last build of billing system/nov2005? but then charging for local usage after your international usage is up. i.e. your local usage is still chaged for :O
 
Who really cares about uncapped LOCAL unless you are a DC++ pirate ... we just want cheaper INTERNATIONAL.

I would suggest you think before you reply. Do you not understand that with cheap local bandwidth it would become worthwhile for companies and individuals to host content locally! Which would allow for the growth of SA content!
 
Maritz argues that “the cap which Telkom places on the bandwidth usage relates to Internet access and not to the ADSL service per se.”

W.T.F :confused:

In its submission about capping Telkom separates the ADSL service from the actual Internet bandwidth usage of the service, saying that "the ADSL service which Telkom contracted to provide to the complainant is a telecommunications access service. It may be used to access a network or the Internet…”

W.T.F x2

The rest of the article is just a bunch of crap really.
 
from what i read it seems they reverting back to the last build of billing system/nov2005? but then charging for local usage after your international usage is up. i.e. your local usage is still chaged for :O

Except the reason they waited to implement this was that they had to make big upgrades on their network etc to record local seperately from international. Meaning, hopefully, that your currect cap will only be depleted by international bandwidth. This is the one thing I'm happy about...

Anyone have a definite answer about this? Will local still be counted and billed seperately while you are using international, because this makes packages have no fixed price, and most people who could live on thier cap will now pay a few aribtrary rands extra. However it is very useful for me and a lot of others.
 
This thread made my day. I had a really good laugh.

But still, I don't see why telkom bother making excuses or explaining their actions. They are answerable to no-one so why waste the time?
 
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