Khetha Media not happy

ADSL South Africa (Broadband South Africa), 27 March 2007

In papers filed with the Independent Communications Authority of SA (ICASA), Khetha Media commented about the unfair advantage Telkom Media will have over broadcasters, if Telkom is allowed to keep its monopoly on the local loop.
 
Khetha Media commented after ‘…Icasa had invited interested companies to comment on subscription broadcasting licence applications by January’ (Broadcasters take aim at Telkom, Mochiko, Business Report, 22 March 2007).
 
It’s no secret that ‘Telkom plans to offer internet protocol television (IPTV) over its high-speed asymmetric digital subscriber line (ADSL)’ (Broadcasters take aim at Telkom, Mochiko, Business Report, 22 March 2007).
 
In other words, Telkom plans to bring TV to your PC by making use of ADSL broadband.
 
How much money does Telkom plan to invest in IPTV over ADSL?
 
They plan to invest a massive R7 billion plus in IPTV over ADSL, a sure sign of the important role IPTV is going to play in our lives within the next couple of years.
 
Which channels will they offer and how much will it cost?
 
Telkom will offer channels featuring ‘….sports, reality programmes, soap operas and news for a minimum of R100 a month’ (Broadcasters take aim at Telkom, Mochiko, Business Report, 22 March 2007).
 
In other words, Telkom subscribers will enjoy a variety of programmes for a minimum of R100 per month.
 
What seems to be the problem then?
 
‘Telkom is the only company that owns fixed telephone lines linking homes and offices. Neotel, Telkom's only competitor, is yet to provide services and has no access to fixed lines’ (Broadcasters take aim at Telkom, Mochiko, Business Report, 22 March 2007).
 
‘Khetha said that given that local loop unbundling had not been prescribed, there was a risk that Telkom Media would have undue preference in providing IPTV over ADSL. Khetha questioned whether Telkom would give access to other broadcasters transparently and without discrimination in the absence of regulation’ (Broadcasters take aim at Telkom, Mochiko, Business Report, 22 March 2007).
 
In other words, Telkom Media + Telkom’s monopoly on local loop + IPTV over ADSL = Disaster for broadcasters.
 
What’s government doing to address the problem?
 
‘In an attempt to force Telkom to give other operators access to the last mile, the government has appointed a local loop unbundling working group’ (Broadcasters take aim at Telkom, Mochiko, Business Report, 22 March 2007).
 
In other words, a working group will assess the situation and report to government, hoping to place pressure on Telkom in the process.
 
When is the first report of the ‘local loop unbundling working group’ expected?
 
‘The government expects a report in the second half of the year’ (Broadcasters take aim at Telkom, Mochiko, Business Report, 22 March 2007).
 
In other words, we can expect a report before the end of the year.
 
What happens after the government receives the report?
 
‘Icasa would then determine how best to achieve the unbundling, the ministry of communications said last month’ (Broadcasters take aim at Telkom, Mochiko, Business Report, 22 March 2007).
 
In other words, the part where action must be taken to rectify the situation will ultimately end up in the ‘capable hands’ of the staff at ICASA.
 
How many companies will probably compete in the IPTV over ADSL market?
 
‘Khetha Media and Telkom Media are among 18 companies that have applied for licences to compete with MultiChoice’ (Broadcasters take aim at Telkom, Mochiko, Business Report, 22 March 2007).
 
In other words, about 20 companies will compete to bring IPTV over ADSL. 
 
ADSL South Africa (Broadband South Africa) welcomes any efforts to bring us IPTV over ADSL but not at the cost of true competition.