Telkom to streamline retail pricing

Telkom says it plans to streamline its pricing framework for retail services provided to Internet service providers (ISP), as customised rates for each ISP could create unnecessary complexity.

The fixed-line operator also sees interconnection with other providers happening as a commercial arrangement with licensed entities, as the unbundling of the local loop is unlikely to take place within three years.

Speaking at an analyst briefing yesterday, Telkom managing executive for retail services Stephen Haywood said currently each ISP that signs an interconnection agreement with Telkom negotiates slightly different terms. As a result, there is potential to have too many rates in the market, creating complexity in the matter.

"From a retail perspective, Telkom does not want to have too many rates in the market, and would like to put offerings in two or three bands," he said.

He added that Telkom expects to file a new pricing schedule with the Independent Communications Authority of SA (ICASA) within the next 30 days. Telkom also plans to counsel ISPs to review their position on rates, he explained.

the fixed-line operator said it is willing to sign interconnection agreements with other operators, as long as they are licensed. It has signed a number of interconnection agreements with ISPs, Haywood said.

Haywood commented that the pace of deregulation, which has been slow, and the fact that ICASA already has a full plate dealing with other matters, means that local loop unbundling will be put on the back burner.

"I don't see local loop unbundling happening in three years," he said.

In the meantime, the most viable solution is that the fixed-line operator enters into a commercial interconnection contract with operators who wish to interconnect and are licensed to provide services. There would be benefits for both parties, as Telkom would not be giving away its infrastructure, Haywood stated.

Communications minister Ivy Matsepe-Casaburri told the Parliamentary Portfolio Committee on Communications in February that the Local Loop Unbundling Advisory Committee held several meetings and an interim report would be completed by March. The final report would be completed towards the middle of the year, she said.

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