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The monopoly blues

By Jason Norwood-Young, Contributor
Johannesburg, 02 May 2001

While standing in the queue at Telkom`s small outpost in Rosebank, I passed my time by overhearing Telkom customers complaining bitterly to the tellers about their accounts, and demanding months worth of itemised bill statements. None of them seemed to be able to comprehend the vast sums of money owing to Telkom, and were determined to sweep the bill with a fine toothcomb in the hope of finding some escape from the financial telephone burden.

[VIDEO]I was there for the same reason. I did not expect to find any strange calls on my bill, but I needed an itemised statement to help me understand where I would be able to cut on my phone costs. Not surprisingly, most of my bill consists of Internet calls. The majority are under two minutes, as I log on, check my mail, and log off again. However, I am charged 51c for every time I do this - usually around 10 times a day.

That means I`m paying a minimum of R5.10 a day for my Internet connectivity, although at least one call will last longer than three minutes as I download a large mail, or browse the Internet for research. Half an hour sets me back over R5.

Twice the price

Meanwhile, my colleagues in Europe and the US tell me about their new broadband lines, constant Internet connectivity, and a flat fee that is a small percentage of my monthly bill. I am paying more for a 44kbps connection - when I`m lucky enough to get 44k - while they are surfing the Net at 128kbps and up. Most business in this country cannot afford a 128k pipe, while the rest of the world has it to the home.

Not only do I fork out to Telkom, but I also have to pay my ISP for my connectivity.

Jason Norwood-Young, technology editor, ITWeb

I am also paying twice for every call. Not only do I fork out to Telkom, but I also have to pay my ISP for my connectivity. Overseas, you need only pay once.

Even those who still dial up to an ISP with a modem overseas seldom have to pay for the local call, yet again saving them the double-costs that we are forced to pay locally.

From personal experience, Telkom`s service has improved greatly over the last few years (although I know some who would disagree with me). I believe this is probably due to the impending competition as the market deregulates.

When British Telecom (BT) lost its monopoly in England, it also lost most of its clients to the new competitors. Most returned to the BT fold, but not before the company made a loss that almost broke it. It is much cheaper to retain customers than to find new ones or woo old ones back, and BT`s mistake is one that Telkom doesn`t seem keen to repeat.

I, and many others, however, believe that good service is not enough to warrant staying with Telkom. Price is a major factor, and the amounts that it has taken from me over the years for what, in the rest of the world, is essentially a commodity, will not be forgotten when the new operators start offering their services in this country.

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