Telkom sticks with SAT-3

By Candice Jones for Telkom

Johannesburg, 16 Jan 2008

Telkom will continue to invest in the SAT-3 system, it says. This is despite draft regulations, published by the independent Communications Authority of SA (ICASA), stipulating SAT-3 becomes an essential facility.

Telkom has held control over the undersea system since its inception. ICASA's draft regulations bring the fixed-line operator's monopoly in the undersea international gateway near an end.

Executive of wholesale sales and marketing operations at Telkom Johan Meyer says: "Telkom will continue to serve SA for many years to come and it is the company's intention to further invest in SAT-3 system upgrades to support the growing demand for capacity on the system."

South African telecommunications operators have long called for the SAT-3 undersea cable to be declared an essential facility. ICASA's draft regulations have since stipulated that international gateways, such as SAT-3, are essential.

Operators also said Telkom was not providing fair access and access charges were too high, amounting to as much as four times what international operators charged for access to the same facility.

The Communication Users Association of SA and the SA Value-Added Network Association (SAVA) also called for national backhaul circuits to be declared essential facilities, enabling competition and price reductions in that space.

"The pricing anomaly [where national backhaul connectivity is more expensive than international connectivity] effectively nullifies any landing point liberalisation or new, ocean-based connectivity services, regardless of how fast or cost-effective they may be," said SAVA chairman Paulo Froes.

However, Telkom says: "Our investment in the SAT-3 cable provided connectivity to a growing South African economy at a time when it was desperately needed and Telkom is proud to be associated with this venture."

According to Meyer, the cost of the facility was reduced as utilisation increased. "In turn, Telkom passed it on to the public through ongoing price reductions in international private leased-line circuit prices."

ICASA says it may hold hearings before finalising the essential facility regulations.