Chapter 4 South Africa: the Internet Wars
Negotiating the Net 4/1/2005 - 1 – ________________________________________________________________________ CHAPTER 4 SOUTH AFRICA: THE INTERNET WARS Introduction It was an eleven page fax, unsigned, with a Telkom cover sheet, addressed to ISPA, the Internet Service Providers Association. And it confirmed their suspicions. Things were coming to a head. Only a few days previously, on 11 June 1996, Telkom, South Africa’s giant, state-owned telecommunications monopoly on whose networks the internet and e-mail traffic of the entire client base of the ISPs depended, had finally entered the fray. The months of informal pilot testing, which the various private sector ISPs had anxiously been monitoring, had ended. A major new ISP for them to contend with had officially been launched. SAIX, the South African Internet eXchange, was now out there, in their market. Since Telkom's pre-commercial testing had begun on 1 October of the previous year, they and the other ISPs had talked of little else. An ISP operated by the incumbent could mean no-holds-barred competition for clients (particularly the profitable corporates, whose leased lines were rented from Telkom, making the telephone monopoly privy to their entire client database), including cross-subsidies and predatory pricing. Already many of them knew of informal approaches to their own clients - and the carrot of cheaper prices. Five ISP representatives had met to discuss the growing threat - Dave Frankel of Internet Solution, Jon Oliver of GIA, Mark Todes of Internet Africa, Steve Corkin of Sprint, and Internet activist Ant Brooks. With the support of other ISPs, they had planned the formation of an Internet Service Providers Association.
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