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Aardvark Weekly 10 June 99
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Dateline: 11 June 1999 All-day Edition
Read Yesterday's Edition

Telecom Enrages Net Users And ISPs
Internet users and ISPs have been outraged by Telecom's decision to impose a two cents per minute surcharge on some Internet data calls as of August 1.

According to Telecom's Glen Sowry, this isn't an extra fee that anyone should end up paying -- it only applies to those who don't use the new 0867 prefix.

Sowry says the 0867 prefix will allow Telecom to route data calls through an "intelligent network" that is better able to cope with the stress that Net users are placing on the public telephone network.

Tim Wood from IHUG is not impressed. He says it's stupid for Telecom to launch a flat-rate service on the one hand and then complain that Net use is overloading their network on the other. Sowry counters that claim by stating that all of XTRA's dial-up customers use Telecom's IPNet service which already handles calls more intelligently.

When questioned about the cost of this change, Sowry naively commented that "we are making the new numbers available free of charge to ISPs." Asked about the huge costs that some ISPs will face when they're forced to throw out stocks of existing "Startup" disks and deal with what could be a mountain of help-desk calls from users wanting to update their dialers and avoid the two cent per minute fee Sowry would only say "we will be providing ISPs with assistance in moving their users to the new numbers." He would not be drawn as to whether this "assistance" would also include any kind of compensation or financial assistance to cover the costs involved. "ISPs need to talk to us on a one-to-one basis to establish exactly what kind of assistance is provided" he said.

A significant number of ISPs have contacted Aardvark to voice their concern over this latest dictate from Telecom. Most have cited their belief that any attempt to charge residential users a "per-minute" fee for using their phones is a breach of the Kiwi Share. Telecom's Glen Sowry says "our advice is that this isn't a breach of the Kiwi Share."

Another point voiced by many ISPs is the total lack of consultation involved in the production of this "solution" to the problem of extra load on the phone system. One ISP commented "perhaps they ought to spend just a little more of their profit on making sure their network and switches are up to the task rather than looking for another way to hit users and competitors in the pocket."

Despite Telecom's assurances to Aardvark that all ISPs had been given advance notice of the change, many of those spoken to yesterday had heard nothing until Thursday afternoon -- just an hour or so before a press release was issued to the media.

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