Telkom: ‘[ADSL] Draft Regulations may be unconstitutional’

If the threat had not been so great, we would have honestly fallen off our chairs when we read this one. A company that is activly destroying the South African economy and its technological growth saying that something that rather looked after the public instead of its own interest was unconstitutional.

This is the same company the when found guilty by the Competition Commission and finded over 3 Billion Rand, declared that the CC had no authority over them. Oh come on Telkom. Honestly, who do you think is going to buy this bull? You want us to feel sorry for you after you have abused us for so long? I dont think so...

Telkom has criticized the ICASA ADSL Draft Regulations, suggesting that it may be unconstitutional.
 In its 55 page submission to ICASA, Telkom is of the opinion that the draft regulations will prevent the proper recovery of costs and can therefore be seen as expropriatory. <

“Telkom, therefore, submits that the Draft Regulations are expropriatory in nature as they prevent the proper recovery of costs. As such, the Draft Regulations may be unconstitutional.” Telkom said in its submission.


Telkom called for a variety of clauses in the Draft Regulations to be deleted.


Telkom stated that it is unfair to single out ADSL in these regulations adding that the whole spectrum of broadband services and technologies should be examined.


The incumbent summarized its feelings towards the ADSL Draft Regulations as inappropriate and inapplicable.


“…it is Telkom’s view that the Authority’s Draft Regulations are inappropriate, ultra vires and inapplicable.... It is also Telkom’s opinion that the Draft Regulations are premature and that should only be used as input to the broadband policy framework” Telkom said.


In its submission Telkom often referred to international broadband standards and services, but failed to supply a satisfactory explanation on why they are several times more expensive than their international counterparts.


In its criticism of the proposed minimum monthly bitcap of 10 GB, Telkom states that the average monthly usage of ADSL users is 2.5 GB, which will make it unfair to charge users for 10 GB.


The figure of 2.5 GB is interestingly enough much higher than the 1.4 GB average disseminated previously.


They also claim that over 90% of ADSL users are in favour of port prioritization. “Over 90% of customers prefer a prioritised service due to the cost saving the product offers wholesalers and retailers.” Telkom said.

Evidence as to the source of this information is not supplied and leads one to question how Telkom came to this conclusion.

Telkom attacked their broadband customer’s feedback and submissions to ICASA.


Their key complaint in this regard was that the complainants are a small minority with a poor understanding of the ADSL service who ignored critical aspects of the service.


“…the Draft Regulations seem to only recognise interests expressed by a small but very vocal minority of broadband users, who seem to have a poor understanding, or to ignore the economic and technical complexities of service provision,” Telkom said.


Papi Molotsane, CEO of Telkom, has said on many occasions that Telkom will become a more customer friendly company who will listen to consumers. The statement regarding their broadband customers to ICASA by Telkom presents a stark contrast to what the CEO has suggested.


In November last year he also suggested that Telkom’s ADSL service will improve to such a degree that it will make the ADSL Regulations unnecessary, but again Telkom’s actions are not in line with its CEO’s wishes.


ICASA will schedule public hearings on the ADSL Draft Regulations later in the year, but a specific date has not been set yet.

Original Link: http://www.mybroadband.co.za/nephp/?m=show&id=1928



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