Telkom seeks private ICASA talks

By Paul Vecchiatto for Telkom
Cape Town, 04 Aug 2005

Telkom prefers to engage the Independent Communications Authority of SA (ICASA) in private to educate it on how its ADSL service works rather than take it head on, says Steven White, Telkom`s executive for product development.

This follows last week`s release of an ICASA report criticising Telkom`s ADSL pricing, and subsequent newspaper reports saying Telkom could scrap further investment in the ADSL network.

However, White says Telkom would like to "approach the regulator on a friendly basis and preferably handle it as an internal matter".

The recent reports have sparked a storm of debate, with potential Tekom rivals in the ADSL space expressing shock at a possible scrapping of further investment in the network, which would leave the country even further behind its peers in rolling out a high-speed digital network.

MyADSL forum member Philippa Davis authored an open letter to Telkom on behalf of the Web site, asking Telkom to validate the comments made by the company in the press. Davis says she has not received a reply.

"This is typical of the juvenile attitude displayed by Telkom. They always adopt the 'if we don`t like what you are saying, we will sue you, or prove that you are stupid` approach," she says.

David Jarvis, CEO of wireless Internet service provider UniNet, says he was shocked by Telkom`s reported comments.

"[White`s] comments basically threaten to hold ICASA to ransom. We are increasingly optimistic about the role of ICASA in promoting real transformation in the South African telecoms environment, and we now believe ICASA to be an indispensable ally in UniNet`s own broadband roll-out in underserviced areas in particular."

Dave Gale, Storm director of new business, says he has no problem with Telkom and ICASA holding private talks. "However, I hope ICASA stays the path."

Gale says he would prefer if ICASA had decided to institute more sweeping reforms, rather than focusing on one specific issue.

He says these would include unbundling of the local loop and separate accounting practices that would "show how much Telkom charges itself on its own wholesale prices and level the playing fields".