Dial-up minute rebate secrecy continues
According to some sources, Telkom has launched its new service where ISPs reselling dial-up accounts from the incumbent are receiving between 3c and 7c per minute – depending on its monthly volume – for all Internet calls made by their subscriber base.
All Service Providers receiving this rebate from Telkom have been sworn to secrecy about the service through a compulsory confidentially agreement. This means that very few ISPs are willing to entertain any conversation about the service.
Telkom has even denied that such a service (or planned product) exists despite various sources in the ISP community confirming that they have received documentation and agreements from Telkom about this new product.
Sources say the rebates only apply to ISPs where their dial-up user base has more than 100 000 minutes per month, and where at least 60% of their subscriptions are made up of Telkom products. This speculation could however not be confirmed.
Various ISPs pointed out that their margins on dial-up services will now far exceed their profit on ADSL accounts. This raises the question as to whether ISPs may start to promote dial-up Internet access in preference of ADSL.
Despite the secrecy and uncertainty regarding the supposed new product, ISPs have generally welcomed a system which allows for profit sharing and creating another revenue stream.
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