In a strongly worded letter sent to the regulator and the Department of Communications, the Online Publishers` Association (OPA) has requested a meeting with government representatives to discuss ways of reducing the high cost of bandwidth in SA.
The OPA, which represents 16 of the country`s top online publishers with a combined readership of around three million, is concerned about the high prices Telkom charges for local calls and Internet services.
The letter has been directed to communications minister Ivy Matsepe-Casaburri, deputy communications minister Roy Padayachie, acting communications director-general, Phumelele Ntombela-Nzimande and chairman of the Independent Communications Authority of SA, Mandla Langa.
The OPA believes the high cost of calls is inhibiting business development and the growth of the Internet in SA, citing a World Wide Worx report which shows that SA had slipped from being among the top 20 most connected countries in the world to 34th position by January 2003.
According to the letter, businesses in SA are increasingly reliant on the Internet to conduct their daily business, but "Telkom`s monopoly of the telecommunications sector has seen prices rise far beyond global trends in the western world".
"These rising costs make it extremely expensive for companies to do business - negatively affecting business growth and the growth of the information and communications technology industry in this country," the OPA says.
In illustrating its point, the organisation points out a CareerJunction case study, which shows that 500GB bandwidth availability in the UK from a particular ISP will cost R2 875 per month (using an exchange rate of R11.50 to the pound).
However, a similar service in SA, supplying only 200GB of bandwidth, would cost approximately R40 000 per month, or around 13 times as much as its European equivalent.
These prohibitive cost structures, says the OPA, affect all companies that rely on the Internet for business transactions, including such critical areas as banking, e-business, tourism and the travel industry.
"SA`s call and Internet charges are clearly out of line with global trends, and failure to speedily address this problem will undoubtedly force many companies to move their business interests overseas, which will have a significant impact on the economy," states the letter.
It also points out that although it is the Internet service providers that offer this service, it is Telkom SA that controls the pricing tariffs for bandwidth, and it is in these exorbitant pricing tariffs where the real cost issues lie.
The letter, signed by OPA chairman Russell Hanly, concludes with a request "that a representative of government revert back to the OPA on this urgent issue, in order to assist us in exploring ways to reduce these operating costs as soon as possible".
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