TelkomInternet not hard-capping its ADSL service
As of November 1, 2005 Telkom implemented a pay-per-gig billing system which introduced a local cap. Previously when users reached their limit they could still surf local sites but with the new system this came to an end.
But according to Johan Ferreira, MD of DotCo an ISP currently involved in a court battle with Telkom, TelkomInternet are not hard-capping their clients.
It is only TelkomInternet clients that are still able to surf local sites even after they have reached their cap.
Ferreira decided to test a TelkomInternet package so he purchased a 3G ADSL account from TelkomInternet on the 1st of November.
He managed to download 18GB in the first day. After disconnecting and reconnecting again on the 2nd he was still able to download local content at over 100 Kbps and has continued to use this account at will.
“TelkomInternet is not capping at all. I’ve done 44GB in 7 days and can still download Netscape from America,” said Ferreira.
Ferreira also commented on the fact that the vat registration number for SAIX and TelkomInternet is the same. This begs the question as to the nature of the relationship between the wholesale and retail divisions of Telkom.
“Telkom’s SAIX accounts are on the Telkom data bills. All of them have “Telkom SA Ltd, Reg no 1991/0055476/06, VAT no 4680101146” on the bottom of the page,” reported Ferreira.
Uncompetitive behaviour from Telkom has become an issue of contention for smaller ISP’s trying to earn a living in this industry.
It is practices of this nature which have lead other ISP’s to call foul. Complaints abound in ISP circles regarding Telkom’s structuring of their ADSL service and the unfair advantage of TelkomInternet.
Telkom’s possible response is that TelkomInternet is a completely separate entity and that the two operate as independent businesses but there seems to be evidence of favouritism as other ISP’s are not able to negotiate similar deals with SAIX.
The fact that the money, whether it is from SAIX or TelkomInternet, eventually lands up in the same place appears to create a major conflict of interests.
With the new capping saga it looks as if Telkom has been caught engaging in anti-competitive behaviour.
Ferreira validly poses the question: “Is it fair for Telkom to wholesale hard caps and retail soft caps?”
Details about Ferreira’s testing can be found here.
Telkom was unavailable for comment.
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