Telkom is having a really bad month. The continuing lockout of striking members of the Communications Workers Union saw its Pretoria offices` reception trashed and sabotage to the network was reported.
Changes to the pricing structure for calls to the cellular networks, due to be implemented on 20 September, are being disputed by the South African Telephony Managers Association.
Business Against Crime in Cape Town says Telkom has not provided the wiring it needs to implement a system of closed circuit video cameras, meant to reduce crime levels in the city centre. And the hacked Web site of Statistics SA recently threatened that if "Telscum" does not refrain from exercising its monopoly, it will be "disconnected from reality".
With Telkom already beating these fires out, the South African Telecommunications Regulatory Authority (SATRA) jumped into the fray at the end of last week. SATRA has issued a cease and desist order, instructing Telkom to refrain from anti-competitive practices relating to value-added network suppliers (VANS).
A complaint lodged with SATRA by the South African VANS Association claimed that Telkom had been spreading rumours that the services offered by its members are illegal and that some members would see their services terminated. SATRA ordered Telkom to immediately stop these activities.
But Telkom says it didn`t do anything. "We find it strange that we are prevented from doing something we were not doing," says Gabriele Celli, Telkom executive in charge of regulatory relations. He says Telkom will comply with the order, but that it does not agree with most of the SATRA findings. "The allegations made were not substantiated," he comments.
Although Telkom will comply with the order, it is still at war with providers of virtual private networks (VPNs) and will not supply any further services to these suppliers, which they deem to be doing illegal business.
Telkom says it does not dispute that VANS are legal, and does not claim exclusivity in the field. "We do not claim to be the sole supplier of VANS, we are one of many," Celli says. But the company says a VPN is not the same thing as a VAN.
The argument is somewhat complex. According to Celli, a private telecommunications network (PTN) may be established in order for any company to conduct its business. This PTN may interface with the public switched telecommunications network (PSTN). "A call that originates in the public network may be passed into the private network and there handled in any way," he says. But by-passing the public network is prohibited by law. A call may not be passed into the private network and back into the public network again. And this is exactly what VPNs do.
"A VPN amounts to public switched telecommunications service," Celli says. That type of service is protected as Telkom`s sole right under its licence.
So according to Telkom`s interpretation of the law and its licences, VPNs are illegal. Although it plans to abide by the SATRA ruling, it still has some teeth left. "The ruling does not prevent us from withholding future services," Celli says. While it is lobbying SATRA to investigate these alleged illegal services, Telkom will not supply any further services to the affected operators. Current services will not be impacted.
VANS operators are being requested to enter into a contract with Telkom that will prevent these illegal services. Should a company not comply, no future services will be installed.
Meanwhile, the VANS issue has brought a long simmering dispute between Telkom and SATRA to the boil. "I don`t want to accuse anyone of bias," says Victor Moche, group executive of regulatory relations for Telkom. But he points out the several complaints lodged by Telkom against these illegal operators as early as 1997 have still not been addressed. The VANS complaint, received in August, saw a ruling less than a month later.
ITWeb`s numerous telephone calls to SATRA had not been returned at the time of going to press.
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