Telkom, DOTCO slang it out

By Paul Vecchiatto for Telkom
Cape Town, 31 Oct 2005

A war of words has erupted over Internet service provider (ISP) DOTCO`s legal action against Telkom.

Last week, DOTCO said it had been awarded a temporary interdict against Telkom implementing its new ADSL per usage billing structure until 5 December.

Telkom claims the court order preventing it from billing DOTCO according to its new pricing schedules was an agreement and does not "freeze" the implementation of the structure.

A statement released late last week by the telecommunications utility says Telkom responded to the court application by convincing the court to remove the matter from the urgent roll.

"As a result, the case was postponed to 5 December. The case was only postponed to give both parties time to file further papers," the statement says.

Cape Town-based DOTCO says: "The statement by Telkom that 'this decision forms part of an agreement between Telkom and DOTCO, and no court order has forced Telkom to do so` is somewhat misleading as Telkom consented to the granting of the order."

The new ADSL billing structure that changes to a per-usage system from the current per-user system is due to come into effect from tomorrow, 1 November. In terms of the Cape High Court order, Telkom will refrain from billing DOTCO until this case is finalised. The hearing is scheduled for 5 December.

Telkom also says that if a case is postponed, it quite simply means it was not heard in court.

"This, in turn, means DOTCO could not possibly have won an interdict, as it was not heard at all. Telkom did agree to continue billing DOTCO, using the current billing method, until the case is heard on 5 December. This decision forms part of an agreement between Telkom and DOTCO, and no court order has forced Telkom to do so," its statement says.

DOTCO MD Johan Ferreira says: "After discussion between the parties` legal representatives at court on 27 October, DOTCO and Telkom, having reserved all of their rights, agreed to the granting of a court order that Telkom would refrain from charging DOTCO the new rates for ADSL pending the final adjudication of the dispute on 5 December. A court order was thereafter issued in these terms by the Cape High Court."

Not really a price increase

Telkom contends its new ADSL billing structure does not represent a price increase, but rather a method by which each ISP can determine its own price offerings.

"This means Telkom will perform the role of ADSL wholesaler as opposed to the perception created in the industry that the company is regulating ADSL usage," Telkom says.

It also says Telkom has had to regulate ADSL usage because certain ISPs purchase 3GB accounts from Telkom and then resell it as 30GB accounts, leading customers to believe they purchased 30GB accounts. "This practice is an abuse of the ADSL service."

Users` comments

ADSL user forum MyADSL.co.za says in its commentary over the matter: "MyADSL, on behalf of the broadband consumers it represents, has asked Telkom on various occasions to re-evaluate this new billing system, but these requests went by the wayside."

The user forum says that in this instance Telkom has once again brushed the concerns of broadband users aside and forged on regardless of what the broadband community needs or wants.

"It is high time for Telkom to provide firm commitments and to put aside their policy of empty promises. It is not enough to simply say they are endorsing a consumer-centric approach," the MyADSL commentary concludes.

Telkom`s attorneys in the matter are Van Niekerk & Gend and DOTCO`s are Michalsons Attorneys.