The price-structure report released by the Independent Communications Authority of South Africa (Icasa) last month on Telkom’s ADSL service has solicited further political backing, with the Independent Democrats also joining the fray on Monday.
The Patricia de Lille-led ID endorsed Icasa’s report on “inflated” fees.
“The ID is, however, concerned about the fact that Telkom is disputing the content and the findings of the report. Internet and telephone charges in South Africa are ridiculous [60 to 100 times more expensive than in other developed and developing countries], as the recent Gardner report has revealed,” ID spokesperson Vincent Gore said in a statement.
The party’s statement comes just days after the country’s third-biggest political party, the Inkatha Freedom Party, accused Telkom of using “bully-boy” tactics against Icasa.
The ID noted the negative economic impact that high ADSL tariffs yield, adding that high fees place local firms at an unfair disadvantage in terms of competing with global peers.
“In addition, in a country where 90% of the country’s population has no access to the internet, we need to find mechanisms to allow all South Africans to have access to the information ‘super highway’ through the provision of quality and affordable communication services,” the ID said, calling on the telecommunications firm to start respecting Icasa’s findings.
Telkom, in which the government has a 38% holding, should “stop using its monopolistic attitude, bully-boy tactics and threatening to withhold future investment in the sector”, it added.
“Instead of complaining, Telkom must begin to understand its pivotal role in developing this country and realising South Africa’s full potential. We all have an obligation, and Telkom is no exception. It must come to the party,” the ID asserted.
In response to Telkom’s Steven White, who said the firm would be unable to continue rolling out ADSL if it is not allowed to recover its investment through basic access rental, Rudolph Muller of MyADSL — an ADSL interest group — said the company’s threat to “pull the plug on ADSL if its current profits are in jeopardy” are unjustified.
“It is not surprising that Telkom will do anything in its power to stop Icasa’s ADSL findings from becoming regulation, as this can cost them millions per month in revenue,” said Muller.
“Their fight can be seen as nothing more than a means to protect their exorbitant profits. We sincerely hope that the government will step in.” — I-Net Bridge