Telkom has launched two new Internet protocol (IP)-based virtual private network (VPN) services which it describes as "very cost-effective".
The ViP Dial service allows remote access to a central corporate location, using IP with secure tunnelling, for the cost of a local phone call. In SA the service uses a non-geographic 0860 dial-in number, and while calls from outside the country will be charged at standard international rates, the company says it is negotiating with other operators to offer local calls in other countries.
At an incremental cost per user it describes as "well under a R100", ViP Dial could compete with dialup ISPs for the business of telecommuting and mobile workers.
Telkom says companies using ViP Dial could expect an approximate 40% reduction in remote access costs.
The permanent link product, ViP Link, provides a cheap alternative to traditional Diginet lines for wide area network (WAN) connectivity. While offering a 64kbps connection with an 8kbps committed access rate, the most basic ViP Link installation will come to a flat rate of around R4 000 per month, which includes router rental and management.
"This is not meant to replace a large corporation`s committed bitrate WAN," says product development executive Steven White. But for smaller companies it does amount to "fit-for-purpose WAN outsourcing" he says.
ViP Link lines are available from 64kbs to 2Mbps capacities.
While some current users of the Telkom frame relay VPN service will probably migrate to ViP Link, these are expected to be far outweighed by the number of new customers attracted by the pricing.
It is also in direct competition to services previously offered by other value-added network service (VANS) operators.
"We are launching these products as a market response," says White.
Although current legislation would allow Telkom to offer voice over IP on both products, and the amendments currently under debate in Parliament are not expected to change this, the company says it has no such plans for the foreseeable future.
In 1999 Telkom claimed its monopoly also covered VPN services and that VANS offering these were in contravention of the law. The dispute was later largely settled.
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