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Industry Insight
26 May 2006
Telkom threatens higher connection fees
BY
DAVE GLAZIER
, ITWEB JOURNALIST
READ IN THIS STORY:
[
Johannesburg | ITWeb, 26 May 2006
] -
Telkom took a defiant stand yesterday during argument against the promulgation of the Independent Communications Authority of SA's (ICASA's) proposed ADSL regulations, at the authority's ADSL public hearings in Sandton.
The new regulations, currently in draft form, propose that monthly connection fees (R477 for home DSL 512 users) be scrapped, and that a single once-off connection fee be charged.
Responding to this, Telkom warned it would charge higher prices for a once-off connection fee, in order to offset the loss of monthly connection tariffs.
“Because it would be a once-off fee, it would be more expensive than the current connection fees,” said Vincent Maleka, a lawyer from Duma Nokwe Group, representing Telkom at the hearings.
“We would discourage an attempt to introduce a once-off connection tariff,” he said.
The current initial installation fee is R404, but Telkom was unwilling to disclose what the inflated once-off fee is likely to be, should ICASA's proposal be adopted.
Line rental fees
The new regulations make provision for Telkom to continue charging line rental fees – an issue that was not disputed.
Maleka said bringing in a once-off connection fee would effectively deprive people of the opportunity to use ADSL for one month and disconnect it for the next.
“Some people want to come ‘in and out' like that – we urge ICASA to consider a pricing structure which allows for a month-by-month connection fee,” he stated.
ICASA councillor Mamodupi Mohlala said she cannot rule out the possibility that the authority may in time regulate actual pricing – over and above the potential restrictions on billing structures.
Telkom's position was reflected in its refusal to answer certain questions and to allow media photographs.
For the purposes of these hearings, however, the areas of discussion did not include the ‘rands and cents' of the matter.
No relief
Various Telkom representatives confirmed that providing a DSL billing structure for those who want broadband, but not ordinary telephone voice lines, would be out of the question. They cited the fact that the physical infrastructure still has to be deployed, even if the user is not utilising the voice service.
The fixed-line utility also said it would be unwilling to comply with the draft regulations section requiring it to disclose contention ratios.
“It is sensitive business information which must not be revealed,” noted Maleka.
“If a person feels R477 [in monthly connection fees] is too much for the economic value derived from the service, they should go the Competition Commission.”
The new regulations, currently in draft form, propose that monthly connection fees (R477 for home DSL 512 users) be scrapped, and that a single once-off connection fee be charged.
Responding to this, Telkom warned it would charge higher prices for a once-off connection fee, in order to offset the loss of monthly connection tariffs.
“Because it would be a once-off fee, it would be more expensive than the current connection fees,” said Vincent Maleka, a lawyer from Duma Nokwe Group, representing Telkom at the hearings.
“We would discourage an attempt to introduce a once-off connection tariff,” he said.
The current initial installation fee is R404, but Telkom was unwilling to disclose what the inflated once-off fee is likely to be, should ICASA's proposal be adopted.
Line rental fees
 |
| ICASA councillor Mamodupi Mohlala. |
Maleka said bringing in a once-off connection fee would effectively deprive people of the opportunity to use ADSL for one month and disconnect it for the next.
“Some people want to come ‘in and out' like that – we urge ICASA to consider a pricing structure which allows for a month-by-month connection fee,” he stated.
ICASA councillor Mamodupi Mohlala said she cannot rule out the possibility that the authority may in time regulate actual pricing – over and above the potential restrictions on billing structures.
Telkom's position was reflected in its refusal to answer certain questions and to allow media photographs.
For the purposes of these hearings, however, the areas of discussion did not include the ‘rands and cents' of the matter.
No relief
Various Telkom representatives confirmed that providing a DSL billing structure for those who want broadband, but not ordinary telephone voice lines, would be out of the question. They cited the fact that the physical infrastructure still has to be deployed, even if the user is not utilising the voice service.
The fixed-line utility also said it would be unwilling to comply with the draft regulations section requiring it to disclose contention ratios.
“It is sensitive business information which must not be revealed,” noted Maleka.
“If a person feels R477 [in monthly connection fees] is too much for the economic value derived from the service, they should go the Competition Commission.”
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