Telkom hampers true VOIP

Telkom's tactics continue to delay the availability of true voice over Internet Protocol (VOIP) offerings, say market players. However, there is concern VOIP providers may shoot themselves in the foot by lodging complaints.

Despite VOIP being deregulated in February 2005 - and value-added network service operators (VANs) being allowed access to SA's numbering plan - consumers and businesses are still unable to call a VOIP number.

The reason for this, say market commentators, is Telkom's delay in lodging VOIP termination tariffs with the Independent Communications Authority of SA (ICASA).

Storm's voice business unit manager, Kevin Jacobson, explains the importance of these tariffs: "This basically means Telkom is preparing to interconnect with the VANs and publish the retail rates of that interconnection to Telkom retail clients."

In theory, it allows VANs to offer a near equivalent service to Telkom, with phone numbers and both inbound and outbound calls, he says.

"We've been waiting for these tariffs and the reality is they have been stalled for some time," says Edwin Thompson, Verizon's regulatory and operations executive.

According to an ICASA statement, Telkom lodged the tariffs on 6 March. Spokesman Sekgoela Sekgoela could not provide a firm deadline for the tariffs to be ratified, as "all necessary internal processes and terms and conditions of Telkom's licence will have to be followed before a decision is made".

Jacobson says Telkom is understood to have proposed a rate equal to the VANS rate, plus an additional charge rumoured to be around 44c per minute.

The lowest rate will then be around 72c per minute, he says. "This makes the rate at least 118% less favourable than calling a Telkom local number and at least 14% less favourable than calling a Telkom local number."

Some industry players are concerned one or more VANs may lodge a complaint against the proposed tariffs as these are widely perceived to be too high.

Despite the pricing discrepancy, DataPro CEO Douglas Reed urges market players not to appeal the tariff.

"Lodging a complaint against the tariff will just play into Telkom's hands and delay the process even further. Until this tariff is ratified, we will not be able to terminate inbound calls and the VOIP service providers will not be able to compete on an equal offering footing," he says.

Another market player, who asked not to be named, agrees with Reed. He explains: "To Telkom, going to court would be an advantage. Just look at the recent cases with Telcordia and Internet Solutions - they were happy to spend five or six years in court and they would be happier to do it now with VOIP. You can't help but wonder if Telkom thinks its competitive advantage is in its ability and willingness to sustain long-term litigation."

If, however, no complaints are lodged and the tariff goes through in the normal six weeks, then Reed says competitive forces will force the rates to come down on their own.

"The rates as they stand now are probably fair. We just want them in place so that we can operate," he explains.

Telkom could not comment on the issue before the time of publication.