Telkom and wireless Internet service provider (WISP) UniNet are squaring off over UniNet`s implementation of a WiFi solution within the Knysna municipal area.
UniNet is installing the first of 40 base stations for the Knysna municipality, which will see the Western Cape town become the first wirelessly connected urban area in the country.
Yesterday, UniNet said it had learnt that Telkom had met with city council representatives from Knysna and Nelson Mandela Metropole (Port Elizabeth) over the WISP`s WiFi solution, which includes last mile access.
David Jarvis, UniNet CEO, says Telkom approached the two municipalities and alleged that UniNet was providing an illegal service.
"We have learnt with dismay that Telkom has resorted to underhanded tactics in an attempt to undermine UniNet`s broadband roll-out in the Southern and Eastern Cape."
Knysna CFO Grant Easton confirms he and Knysna executive mayor Joy Cole met with Telkom representatives last Friday.
Telkom: UniNet in the wrong
In a written response to ITWeb, Telkom strongly denies UniNet`s allegations that it has resorted to "underhanded tactics" to undermine the broadband roll-out in the Southern and Eastern Cape.
"Telkom has, in fact, addressed this issue in a manner that is wholly transparent and open. Going forward, the company will continue interacting with the relevant role players in a similar manner," it says.
However, Telkom says UniNet is a value-added network supplier (VANS) and that its initiatives are in contravention of the Telecommunications Act, particularly Section 41 (2) (a) that states: "A private telecommunication network shall not be provided by means of telecommunication facilities other than facilities made available by Telkom or any other person providing a public switched telecommunication network service."
The response goes on to say: "In addressing the issue, Telkom has adopted a multi-pronged approach, engaging in discussions with both district councils and municipalities. During these meetings the stipulations of the Act were explained to the office bearers who were responsive to Telkom`s point of view."
Telkom says it has also engaged the regulator (ICASA - the Independent Communications Authority of SA), which is looking into the matter. "We are currently awaiting ICASA`s response."
UniNet`s Jarvis says: "We insist that Telkom`s repeated allegations about our legality as outlined in their response to our complaint are underhanded and unsubstantiated. Telkom, like UniNet, is a VANS licence-holder."
He says that while Telkom appears happy to point fingers at others, the Competition Commission has found that "Telkom has abused its dominant position by engaging in a pattern of anti-competitive practices" in the VANS industry.
Jarvis says UniNet is also guided by the Telecommunications Act and notes that the section referred to by Telkom relates to PTNs and not VANS and is accordingly not relevant to UniNet.
"Insofar as the quoted section refers to municipalities as potential PTN licensees, it is a misleading reference which is at odds with ICASA`s views on the matter," he says.
Town obligations
Knysna`s Easton says local governments are obligated, in terms of the Constitution, to ensure social delivery and development.
"We began working on this project more than two years ago. When we issued the tender earlier this year, Telkom did not respond to it."
In terms of the deal between Knysna and UniNet, UniNet takes full legal responsibility for the WiFi network being installed, he says.
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