Telkom 'damages ADSL case`

By Dave Glazier for Telkom

Johannesburg, 29 May 2006

Industry observers suggest that Telkom legal representative Vincent Maleka`s lack of knowledge of broadband issues may have damaged the fixed-line operator`s case at last week`s ADSL hearings.

The MyADSL discussion forum Web site received 32 postings on a discussion thread relating to this matter on Friday.

Telkom, presenting on day two of the hearings, argued that certain changes to the regulations proposed by the Independent Communications Authority of SA (ICASA) in its draft ADSL guidelines should not be enacted.

Maleka said if consumers take issue with the cost of ADSL, they should approach the Competition Commission, and that ICASA should not be empowered to make pricing decisions.

This contrasts with Telkom`s denial over the past few years that the Competition Commission has jurisdiction over it. In May 2003, the Mail & Guardian reported that Telkom had launched a High Court action against the Competition Commission, saying it did not have the capacity to fine the company R3.7 billion for anti-competitive bandwidth policies.

Founder of MyADSL, Rudolph Muller, says: "It is regrettable that Telkom didn`t take the chance to be more customer-centric and work with ICASA - instead they went with a hard-hitting lawyer that attacked ICASA."

Time frames

Maleka urged ICASA not to promulgate the section in the draft guidelines that call for monthly connection fees to be scrapped and replaced with a single once-off fee. He said this would deprive people of the opportunity to use ADSL for one month and disconnect it for the next.

Forum participants on MyADSL questioned Maleka`s understanding of the average time frames involved in Telkom call-outs and also the operator`s billing reliability, saying that choosing to be connected on a month-by-month basis would be completely unfeasible.

No answers

Maleka, who was the predominant respondent to councillors Nadia Bulbulia and Mamodupi Mohlala and their panel, was unable to answer the question of whether ADSL prices have increased or decreased since 2001.

"I would have thought that, with the wide range of experts Telkom has brought, someone here today would be able to answer that question," commented Mohlala.

Maleka was also unable to shed light on Telkom`s broadband strategies for the future.

Muller added that, based on the hearings, he would expect ICASA to change the pricing structure to a "one price ADSL product [with monthly connection tariffs scrapped]". The final determinations may not be made just yet, he notes, but says that hopefully by the end of the year the new regulations will be promulgated.

ICASA was unable to say when determinations on ADSL pricing will be announced.

Telkom declined to comment this morning on the hearings.