Telkom warns Icasa on forced fee cuts

[Dastrix]

That’s the challenge for Icasa — to go away and define the market,” Williams said.

Bet Telkom would like nothing better, but hopefully something good comes out of this, I think all of us have had enough of Telkoms lies and daylight robbery.

 

[nictron]

Lets give the panel time, it looks like they mean business this time round. Telkom have basically dug a huge hole for them selves.

I think there implementation and reasoning over the past years have shined prejudice over there image.

Lets hope the panel uses that to finally put Telkom in its rigtfull place.

 

[The_Unbeliever]

one of these is James Hodge who is the author of the Genesis Report - see http://mybroadband.co.za/vb/archive/index.php/t-19825.html

Lovely - just lovely...

The best thing that could ever happen

 

[kris860911]

Oh. I hope Telscum gets run over by a big ICASA bus. Those freekan morons deserve it.

 

[LifelongGamer]

Telkom fielded Deloitte consultant Chris Williams to oppose any interference. Regulations were designed to benefit consumers, Williams said, yet Icasa had not conducted the necessary research to find out what effect its proposals would have.

Why do I get the feeling Mr Williams is sour that ICASA didn't use their services and thus sumarily dismisses that any research or thought was put into this process by ICASA?

Icasa had simply decided that Telkom had too much dominance over various parts of the infrastructure, and had reached a pre emptive conclusion to impose heavy-handed intervention without assessing how competitive the markets were.

Sorry to burst your bubble, but the only part of this that is simple is the fact that the whole world knew this was coming because of Telkom's focus on super-normal profit generation at the expense of the country. That's what monopoloies do - only focus on making money because their clientele have no alternative!

“If you are not doing that first phase of homework it’s pretty difficult for Telkom. That’s the challenge for Icasa — to go away and define the market,” Williams said.

I refute this statement. The difficulty for Telkom is realising it's no longer a sanctioned monopoly and cannot dictate it's own terms to the industry any longer. We're nowhere near to an open competitive market, but we're slowly getting there and like it or not the Golden Age of Telkom is fast nearing an end.

Forcing wholesale prices down would remove any desire by Telkom to invest in more infrastructure, he said.

WHY? Telkom will not be operating at a loss but allowing cost-based access. In fact, infrastructure development costs can be then be split among all the operators leasing access so that the entire network is upgraded yet cost the individual players LESS by sharing costs instead of deploying new networks on their own! Think out of the box for just a second!

Operators would compete by offering rival services over the same infrastructure only if that was cheaper than building their own. This would restrict the choices open to consumers.

Everyone competing over the same network will be FORCED to offer BETTER / SUPERIOR service in order to attract and RETAIN customers. This will mean providing transparent BENEFIT FOR CONSUMERS which (as was re-affrimed in the article by Mr Williams) is what regulations are designed for!

...Telkom told the Independent Communications Authority of SA (Icasa) that forcing a cut in the wholesale fees that other operators paid to use its bandwidth would deter future investment in infrastructure and damage SA’s telecoms sector.

I think Telkom is more afraid of allowing access to it's infrastructure because then there will be proof refuting their claim to have been spending profits maintaining and upgrading infrastructure (which was the repeated reasons Telkom gave ICASA and the consumer for the high cost of services over the years). If not, then why not allow cost-based access, let the market grow and attract more revenue through gaining new customers wanting affordable telecoms / internet access / triple-play services? What's the matter Telkom? You know you cannot compete on even footing?

 

[XCentricdave]

Looks like standard large company response. Try and use fear of the unknown to maintain the status quo.

I remember BT issuing similar statements about broadband pricing in the UK. In BT's case it took a new CEO (from outside the company) to come in and make the change. Ben Verwaayen arrived and basically said BT was halving the price of BB and will have 1 million users in 1 year's time (figures not exact, but ballpark).

You should have heard the moaning and naysayers from within the company. The price cut drove up the demand, and the rest is history. He also made it very clear that constantly fighting the regulator was counter productive. It was far more important to win over customers. Customers pay the wages, not the regulator... Challenge poor regulatory decisions sure, but keep market share by better products and service, not because there is no choice.

Telkom's statement that reduced income from BB will reduce _their_ current ability to invest in networks. They are suffering from too large, too slow, too much waste, can't make decisions. They need to get nimble, or lose share and let the competition take over

 

[The_Unbeliever]

Another dinosaur era coming to a close soon.

Anybody wanting to visit Terassic Park?

Full of live specimens, like the horrible Caprexosaur which would cap your ADSL...

 

[redheadfan]

Does Telkom not use the internet themselves?
This is an issue effecting almost every country around the world. We don't have to go and rediscover the polio vaccine if other countries in the world have it. Here is just one of many sites dealing with ICT regulation - and there are specific recommendations for African countries:
http://www.ictregulationtoolkit.org

 

[a-person]

Telkom c*nts have profiteered enough from us already the f*cking ****ers

 

[NoADSLyet]

Does Telkom not use the internet themselves?[/url]

They use full speed for free and so does all their employees, even on our accounts!

Anyway its that time of the year. Any bets where the next "soon to come" Telkom sponsored holiday will be? I smell another corporate move (towards Telkom) of ICASA seniors just after the next round of price "fixings" is confirmed!

 

[eltherza]

Well, when vodacom and mtn make thier own infrastructure from scratch because it's cheaper and better quality than telkoms service, that just says it all.

Telkoms attitude is - if you make us lower costs so that we dont give the shareholders R200 per seconds, we're just ganna destory the backbone so no-one else can use it...

thats what happens when you dont have competition going "we can do it cheaper and faster"...

 

[DOOMIE61]

In a polite but barbed exchange, Telkom told the Independent Communications Authority of SA (Icasa) that forcing a cut in the wholesale fees that other operators paid to use its bandwidth would deter future investment in infrastructure and damage SA’s telecoms sector

the biggest load of ****!!!! you dont see anyone else suffering in the world

 

[NoADSLyet]

In a polite but barbed exchange, Telkom told the Independent Communications Authority of SA (Icasa) that forcing a cut in the wholesale fees that other operators paid to use its bandwidth would deter future investment in infrastructure and damage SA’s telecoms sector

the biggest load of ****!!!! you dont see anyone else suffering in the world

What they mean IMHO they would not invest (our stolen money) anymore. Now WTFsuck cares, Ivy must just get off her F@T ARSE and open up the system for private enterprise and all will happen, Now she would not as then she loose the golden goose giving her the golden lining she uses for her *****!

 

[Nod]

Are they threatening to NOT provide us with a service? Well, I have bad news for them. In order to take something away, you must have provided something. You only provided a sub-standard service, that everyone is better off without. After the last 2 months, I can't stand to look at that stupid Telkom logo, building or any other Telkom related object. Unfortunately I work right opposite the NNOC. Imagine the horror of having to drive by it every day, twice!

 

[getafix33]

Its a farming fact:

If you keep the sheep fat, they become lazy and unproductive.

Telkom is one big ass fat ugly, woolly sheep.

 

[jetpacman]

"In a polite but barbed exchange, Telkom told the Independent Communications Authority of SA (Icasa) that forcing a cut in the wholesale fees that other operators paid to use its bandwidth would deter future investment in infrastructure and damage SA’s telecoms sector."

OMG! I can't believe what they are saying. Do they not realise that the rest of the business world from outside of South Africa have said completely the opposite. ie the high costs of bandwidth is seen as a barrier to global investment. Just look at Google, they have gone and set up shop elswhere in Africa. That says a lot

Telkom has full control over the infrastructure and the reduced revenues for them will mean that in order to maintain profit they will rather forsake improving the infrastructure. It can't always be about money, how much of it do they want. This kind of attitude will drag the economy down in the long run. If they open the bandwidth gates, they could also open more business opportunities and encourage entrepreneurship.

Is it a stretch for me to think that Telkom is trying to protect Telkom Media? Lets not forget that they amazingly got unlimited capacity on that "network" (Telkom Media IPTv). I think the Telkom media network isn't ADSL but that it uses the Google Toilet network, the Telkom techie actually patches a cable in from you sewerage pipe into you phone patch panel. This then gives Telkom all the capacity that they need for Telkom Media, thanks to the sewerage "network" that flows straight from their mouths.
After all ADSL cannot supply such large amounts of local bandwidth to cater for the needs of Telkom media. If local ADSL was uncapped it could also open up competition in the local IPTV arena. Thank goodness Telkom have the other sewerage "network" to depend on and its going to work nicely because we all know that Telkom operates on pure bull****.

 

[fishfly]

oh? cripple telcomms in SA??? TELKOM is single handedly done that!!

 

[Tns]

They are a arrogant spoilt brat company, they after all owned by the guv.....

 

[Praeses]

It's almost as if Telkom doesn't realize that everybody knows that they are making billions profit every year.

 

[swim]

"Forcing wholesale prices down would remove any desire by Telkom to invest in more infrastructure, he said."

That says it all fvck off telkom we don't need you