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Dateline: 14 June 1999 All-day Edition Read Yesterday's Edition
Telecom's Whirling Derbish Strikes Again
However, you'd never know it if Telecom's whirling derbishes -- the "spinmeisters"
of the PR department were to be believed.
Here's the latest media release from deep within the bowels of Telecom's "External Relations"
department:
ISPS FLOCKING TO SIGN UP FOR NEW INTERNET SERVICE
Twentynine Internet Service Providers(ISPs) have already requested numbers in
the new 0867 Internet service being launched by Telecom. "To have so many
ask to sign up within the first 48 hours is obviously very pleasing," Telecom
Manager External Relations Clive Litt said.
Mr Litt said that the response had been so positive that Telecom's Industry
Service Unit, which was providing the 0867 service to ISPs, would be hiring
extra short-term staf to help with processing applications. "ISPs are really
keen to have it, so we will be bringing in some additional staff to enable them
to offer the service to their customers."
Mr Litt said that Telecom had always understood that there would be some costs
for ISPs in switching to the 0867 service and so had offered to help with the
expense. "They need to inform their customers of the new numbers and assist
some in making the switch. We are more than happy to help them do this.
If any ISPs are facing major expenses in making the transition, we really want
the to talk with their account manager about assistance from Telecom."
Now I'm sorry but even for Telecom, this is an outlandish whitewash job!
Let's examine what is *really* being said:
It should be made quite clear at this point that the 0867 number does not provide
any extra "service" or value to any ISP -- other than avoid the unilaterally
imposed $1.20/hr extra fee dictated by Telecom.
Indeed -- ISPs and Net users can expect a LOWER quality of service
through the new numbers since at peak times it is more likely that calls
to 0867 numbers will go unanswered.
Telecom should make it very clear that there is NO separate 0867 network --
the new numbers are simply used
to flag Internet calls as Low Priority traffic that can be sacrificed
in preference to voice calls when the phone network gets busy. 0867 calls
continue to use exactly the same lines and switches as do existing Internet
calls -- the benefit is solely to Telecom's profits.
All that's happening here is that Telecom is asking Net users to accept a lower
standard of service or to pay $1.20/hour more just in order to retain the
status quo! Note that this lower standard of service will not affect Telecom's
own XTRA ISP which uses IPNet -- a service which is not economically viable for
the vast majority of smaller ISPs, thus it effectively allows Telecom to use its
monopoly position to unfair advantage in the marketplace -- surely this deserves
investigation by the Commerce Commission?
Telecom themselves have had many months to transition the customers of their
own ISP (XTRA) from local numbers to the 0873 IPNet system -- and they have been
doing exactly that. By comparison they have given other ISPs just a month
and a half to do the same.
The fact that after many months there are obviously still some
XTRA customers using dialing the local numbers is perhaps a clear indicator
that six weeks is an unreasonably short period of time in which to expect
other ISPs to make such a transition.
The claims that this move will protect the 111 system may also something of a
red herring -- since a number of "informed" people have advised that the 111
system already has priority over regular voice calls (be they carrying speech
or modem traffic).
It has been suggested by several ISPs that one of the motivating forces behind
Telecom's move is the fact that it could save them in excess of $20m per year
in "interconnect fees" -- the money Telecom has to pay another telco whenever
a Telecom customer calls one of their customers. Note that other Telcos have
no similar way of avoiding the payment of the interconnect fees they must pay
Telecom.
The imposition of this new $1.20/hr tarrif on local numbers is a blatant
breach of the Kiwi Share. As Telecom are so quick to point out at other
times -- the Kiwi Share makes no mention of the Internet -- therefore it
makes no "special" case for it either.
In recent months Telecom has claimed to be "Leading New Zealand Online" -- yet
I know of no other Telco anywhere in the world which has found it necessary
to introduce a two-tiered system for discriminating against Internet calls
instead of providing adequate network capacity. And before Mr Litt comes back
and says that their networks are self-regulating because of per-minute charges
I should point out that NONE of the 20 or so people I know in the USA
and queried this weekend are
presently paying per-call or per-minute charges for their local calls and their
total cost of phone-use is still lower than the average NZ residential user.
I must reiterate my fears that once Telecom has transitioned ISPs over to the
new 0867 numbering scheme, they will impose a per-minute tarrif for terminating
calls to those numbers. This tarrif will be levied on ISPs and justified by
claiming it will be used to fund the network upgrades that Internet traffic
requires. Of course such a cost will have to be passed on to Net users which
will mean a rise in prices and an end to true flat-rate service from all but
Telecom's own XTRA service.
The Minister Of Communications, Maurice Williamson, has for some time been
extoling the virtues of a "Knowledge-based Economy" for New Zealand. Let's
see whether he's prepared to put his money where his mouth is over this.
Should trivial and frivolous radio-station phone-in competitions, TV phone-in polls,
0900 horoscope and dateline services really have priority over Internet communications
which are the very backbone of a "Knowledge-based Economy?"
And before I'm accused of "Telecom bashing" let me say that if Telecom were
really providing a new "service" with some kind of benefit to Net users or
ISPs then I'd be right behind this move. If it meant that we'd have faster
or more reliable connections it would be great!
Unfortunately, all they are actually offering is to
REDUCE the levels of service through 0867 numbers while at the same
time forcing ISPs and Net users to incurr significant costs and inconvenience.
That deserves bashing!
Given that his is an election year, Maurice Williamson and the National Party
might be well advised to take a quick look at latest the surveys reporting
number of Internet users in New Zealand -- that's a lot of votes and, as has
been proven by the massive response across the Net, these are people that
appear to be very strongly opposed to Telecom's unilateral breach of the Kiwi
Share- ignore this at your peril Mr Williamson!
Other Reports On This Story:
Don't forget to visit the
Petition and Information Site
Well that's the objective reporting out of the way. If you want the commentary
then check out
Aardvark Weekly
What do you think? Why not save up those comments and have your say
when the forums are fixed? :-)
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10 June 99
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Aardvark Daily is a publication of, and is copyright to, Bruce Simpson, all rights reserved
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