The REAL issue with Telkom monopoly

[Uris25]

Hi guys,

ICASA and most of the members here do not touch the real subject.

1. Telkom charges R600+ (USD100) to connect your modem to the local exchange - there is no international bandwidth involved.

2. Telkom ISP is the exclusive ISP for ADSL (everyone else is reselling the same service). (R250-R300) ( for accessing the internet + international bandwidth).

So the rip-off was structured in a very clever way, most of the money goes to Modem to exchange connection.

In all other countries Telkom provide only the infrastructure, and all other ISPs can connect to this infrastructure and connect their clients to the internet.

Should other ISPs in SA will use their own bandwidth capacity, the market will be open to competition, you will be able to change ISPs on daily basis should their service will not be up to standard, If an ISP will want more clients he will need to offer better service, better package, Higher usage etc.

The only party that is effected from bandwidth is the ISP and it will encourage them to purchase and find solution for international bandwidth.

So we need to fight for:
1. Any ISP will be able to connect to the ADSL infrastructure.
2. Reduce the line rental

Than The better ISP will win

 

[martin]

You make a valid point but remember one thing: Who do the ISP's buy their bandwidth from?

 

[Uris25]

When ISPs will be able to increase their income they will be able to connect Direct to the USA via Gilat Sat, also UUNet has got their own infrastructure

 

[bb_matt]

They still need to use Telkom owned Infrastucture at some point - for instance, to your house or office

IOW, Telkom hold all the cards in terms of fixed line low local latency ADSL connectivity.

Even the addition of a SNO (haha - fat chance of that happening soon), would require them to hire Telkom infrastructure while they build thier own.

The only short-term hope for affordable broadband in South Africa is actually a wireless solution that doesn't rely on any Telkom owned infrastructure.

A stumbling block to that is whether our government will allow that much competition to effect Telkoms profits - lets not forget, they own 39% of Telkom ...

 

[Celemasiko]

UUNet has got their own infrastructure

UUNET using their own backbone!!!