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| ISPA challenges Telkom's ADSL cap |
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| BY MARTIN CZERNOWALOW, ITWEB SENIOR JOURNALIST |
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[Johannesburg, 27 October 2005] -
As Internet service provider DOTCO goes to the high court to stop Telkom from going ahead with its per usage ADSL billing from 1 November, the Internet Service Provider Association of SA (ISPA) plans to challenge Telkom over the introduction of an ADSL hard cap.ISPA says it will meet with Telkom to discuss the telecommunication provider's introduction of a per-gigabyte billing system and hard cap for its ADSL offering.However, this is unlikely to happen before Telkom launches the new system on 1 November, as the association is still to set a date with Telkom, says ISPA joint-chairman Greg Massel.ISPA, he adds, would prefer not to comment further on Telkom's plans to introduce a per-gigabyte billing system and hard cap for its ADSL service.''ISPA held a workshop to formulate constructive proposals that it hopes to present to Telkom in order to find a mutually-acceptable way forward,'' says Massel. He adds that the details of ISPA's proposals are not for public consumption at this stage.“ISPA members' opinions were mixed,” he says, declining to be drawn on details.Drawing criticismTelkom's new system will affect South African Internet Exchange (SAIX) Internet service providers (ISPs) that have, until now, been reselling ADSL products under a self-regulation agreement with Telkom.This has allowed SAIX ISPs to sell products with 30GB caps at 3GB cap prices – ranging from R200 to R500 a month.However, Telkom's proposal to put mechanisms in place to control the cap for ADSL services has drawn much criticism from industry observers who have slammed the move as uncompetitive and bad for the country's economy.It is understood that Telkom's suggested price for a 30GB account, from 1 November, will be R1 600, excluding VAT.Deliberate abuseTelkom has defended its position, saying the new system is aimed at stopping deliberate abuse of 3GB ADSL accounts that are bought by users from ISPs.“Please note that Telkom never sold a 30GB account. Wholesalers purchase a 3GB account and then sell it as a 30GB account, and end-users are put under the impression that they bought 30GB accounts,” says Lulu Letlape, Telkom group executive for corporate communications.“The solution that will be put in place on 1 November is very simple. Resellers will have two options: firstly, resellers will purchase from a standard set of products ranging from 2GB to 30GB, and all of these products will be hard capped.“Secondly, resellers will make use of usage-based billing and the reseller will be responsible for the total consumption of their end-users; resellers will determine and manage capping of each user individually.”Letlape adds that the introduction of usage-based billing will enable each ISP to make the decision on the size of each account and, furthermore, as to when, how and why to cap or not to cap a service.‘Scapegoat' ISPsA local ISP, Imaginet Internet Services, has lashed out at Letlape's claim that Telkom has never offered a 30GB account.“This is a blatantly false statement, and I have a signed agreement with Telkom to the contrary. The agreement clearly states that 30GB is the limit on the accounts,” says the company's CEO, Darren Miller.“It's obvious that Telkom intends to make SAIX ISPs the scapegoat for its ludicrous attitude towards broadband Internet.”Related stories:
No clarity on ADSL ‘hard cap'
DOTCO wants to stop Telkom
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