"Unbundling" soon a reality

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

Telkom’s ability to terrorise consumers in South Africa with high telephone costs will soon get a severe knock.
 
This will happen when consumers will be given ‘a choice when it comes to picking a fixed-line phone company’ (Telkom soon not only option, Sapa, 25 May 2007). According to Tshilidzi Marwala, Head of the Local Loop Unbundling Committee (LLUC): “Consumers will be able to select carriers of their choice for the transmission of voice and data” (Telkom soon not only option, Sapa, 25 May 2007).
 
In other words, if you hate what Telkom has done to the South African economy and your personal finances, you will love the choice “unbundling” will bring.
 
What’s “unbundling”?
 
Unbundling in this regard refers to the process where government opens up the telephone network for competition.
 
When will the process start?
 
Early next year.
 
According to Marwala who is also the Chairperson of the LLUC ‘…the process of opening up the telephone network would commence in January next year and be 80% complete by 2011’ (Telkom soon not only option, Sapa, 25 May 2007).
 
In other words, if we take Marwala’s word for it we can expect to see action early next year.
 
Can we expect a big drop in the cost of telephone calls?
 
Yes and no.
 
The ‘…process - known as "unbundling" - could see the cost of telephone calls dropping by between 30% and 70% in some areas as a result of competition’ (Telkom soon not only option, Sapa, 25 May 2007).
 
In other words, don’t start counting the chickens but don’t despair either because there’s hope.
 
ADSL South Africa (Broadband South Africa) is convinced that the high cost associated with making telephone calls in South Africa will come down when unbundling kicks off next year.