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10 September 2009

Telkom sets the cat among the pigeons

The recent use of a homing pigeon by a KZN-based call-centre service provider to transfer data has reference.

A few points require clarification. It must be noted that Telkom’s only involvement by way of service provisioning is the actual ADSL access lines. Contrary to speculation, the customer has an up-to 512kbps service at his Howick site from where the “race” commenced – and not Telkom’s up-to 4Mbps ADSL service.

Furthermore, it must be highlighted that Telkom is not the customer’s Internet Service Provider (ISP). Consequently, Telkom is unaware of what services, Service Level Agreements (SLAs), throttling, capping arrangements, etc exist between the customer and his ISP. These are all considerations that will impact the customer’s throughput speeds, especially in view of the fact that their network traffic travels across the public internet via a private ISP.

The ADSL service, in this application, represents a best-effort, unmanaged service which, as was highlighted to the customer during at least five previous meetings, is not the ideal option for inter-connecting Call-Centres. Having understood the nature of the customer’s business, Telkom advised on alternative means of connectivity which the customer has not, to date, accepted. These included a fully managed IP network solution that is more suited to their specific requirement of transporting large amounts of critical data between their sites and their head-office.

Telkom notes with interest that the customer has validated the fact that their choice of technology in the form of ADSL is not suited to the specific business applications that they currently use.

It must be re-iterated that Telkom has endeavoured to convey this view to the customer on several occasions over the past two years and presented alternative solutions which the customer has not embraced. Nevertheless, the Company is still amenable to further present its tailored solutions that will better address the customer’s needs.

One further needs to question the intentions of the customer, as any commercial enterprise is obligated by corporate governance considerations to secure information and data in their possession as well as ensure that the integrity thereof is maintained.

It must also be noted that no faults or complaints were logged by the customer on any of his lines or escalated to his Customer Relationship Manager, while the customer’s fault history over the recent past indicates that an overwhelming majority of these emanated from customer premises equipment and not the Telkom network.

Finally, it has not escaped Telkom’s attention that this entire episode has generated much excitement and interest, but the Company emphatically denies that we are currently considering placing this means of data transfer in our product catalogue and wholesaling it. However, Telkom is glad that, finally, we are able to welcome “real” competition in the telecommunications industry and, as a Company, we are confident that the above-mentioned points of clarification will certainly set the cat among the pigeons.

For further enquiries, please contact:

Pynee Chetty

Senior Specialist: Media Relations

Group Communication

Tel:+27 12 642 1716

Mobile: +27 81 389 7874

Email: chettpr2@telkom.co.za

OR

Leigh-Ann Francis

Specialist: Media Relations

Group Communication

Tel: +27 12 642 1728

Mobile: +27 81 391 4780

Email: francilm@telkom.co.za

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92 Oak Avenue

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ABOUT TELKOM:

Telkom is a leading communications services provider in South Africa. We had consolidated operating revenue of R16.8 billion and normalised profit after tax of R1, 683 million for the period ended 30 September 2015. Total assets amounted to R41.9 billion and equity attributable to the owners of Telkom to R23.5 billion as of 30 September 2015. The group generated normalised free cash flow of R1.4 billion for the period ended 30 September 2015.

As of 30 September 2015, we had approximately 3.3 million telephone access lines in service and 1,030,441 ports connected via MSAN access. We offer business, residential and payphone customers a wide range of services and products, including:

  • fixed-line retail voice services using PSTN (Public Switched Telephone Network) lines, including ISDN (Integrated Services Digital Network) lines, and the sale of subscription based value-added voice services and calling plans;
  • fixed-line customer premises equipment rental and sales services both voice and data needs and these include PABX, Computers, Routers, Modems, Telephone handsets and other ancillary equipment;
  • interconnection services, including terminating and transiting traffic from South African mobile operators, as well as from international operators and transiting traffic from mobile to international destinations;
  • fixed-line data services, including domestic and international data transmission services, such as point-to-point leased lines, ADSL (Asymmetrical Digital Subscriber Line) services, packet-based services, managed data networking services and internet access and related information technology services;
  • Data Centre Operations includes e-commerce, application service provider, hosting, data storage, e-mail and security services;
  • W-CDMA (Wideband Code Division Multiple Access), a 3G next generation network, including fixed voice services, data services and nomadic voice services;
  • mobile communication services, including voice services, data services and handset sales through our mobile navbar-brand called Telkom Mobile;
  •  information and communication services including cloud services, infrastructure services, workspace services, global service integration management and hardware and network equipment sales locally, in seven African countries, the UK and Dubai through Business Connexion Group; and
  • other services including directory services, through Trudon (Pty) Ltd, wireless data services, through Swiftnet (Pty) Ltd.

Convergence is one of our key strategic initiatives in building a sustainable future for Telkom.  We will lead the provision of converged services in South Africa in support of our mission statement: Seamlessly connecting people to a better life.