[Zsd-news] September Newsletter: The Second Network Operator, Telkom's Future Competition

[I. Forbes]

Hi All  

Before I get into this months newsletter, I must first put  
out a  
warning to all users of "advanced" versions of  
Windows - ie  
variants of NT, Windows 2000 and XP.   

A new security vulnerability has been discovered in  
these products  
which is similar but different to the one  which was 
exploited by the  
infamous "blaster" worm.  While the existence of the 
bug is known  
and Microsoft  have released a "patch" to fix it, there is 
still no  
known  exploit "in the wild". However you can be sure 
that  every  
evil minded cracker is busy working this and a  nasty 
worm is sure  
to follow. (for details go to    
http://www.microsoft.com/technet/treeview/default.asp
?url=/technet/ 
security/bulletin/MS03-039.asp)    

To avoid a sticky situation you should install the patch  
from  
Microsoft ASAP. You need to do this even if you  
applied patches to  
fix a Blaster worm problem. Anti- virus software won't 
help either,  
even if you have the  latest pattern files, as this 
vulnerability is open  
to  direct attack over the network.  The best way to 
install  the  
patches is with the help of  
http://windowsupdate.microsoft.com.   

If you receive a friendly e-mail purporting to be from   
"support@microsoft.com" (or something similar) with  
an attached  
"exe" file, delete it, it is definitely not from  Microsoft 
and it is sure to  
be a virus. (for background  see   
http://www.microsoft.com/technet/treeview/default.asp
?url=/technet/ 
security/policy/swdist.asp)   

Users of Windows 95, 98 and ME (and Mac's and  
Linux) need not  
panic. This does not effect you. The  rest of you 
should go to   
http://windowsupdate.microsoft.com now, even before  
you read the  
rest of this newsletter.   


TELKOM and the "SECOND NETWORK OPERATOR"  

I have just returned from a conference in  
Johannesburg where I  
was fortunate in hearing  presentations from a number 
of people in  
the Internet  industry including representatives from 
Telkom and  the  
"Second Network Operator" (SNO) - Telkom's  future 
competition.   

The SNO consortium currently has 3 partners 
destined to buy 49%  
of the shares,  Transtel (who provide telephone 
infrastructure for  
our  national railways), Esi-Tel (who do the same for  
Eskom) and  
Nexus Connexion (a group of "Black  Empowerment" 
investors).  
They are still looking for a  "Strategic Equity Partner" 
(SEP), an  
international  telecommunications company with lots of 
money to   
take up the remaining 51%. However to date, no  
suitable partner  
has been forthcoming.   

The SNO, when it happens, will have the opportunity  
to deploy new  
technologies. They already have their  eye on cost 
saving ideas. As  
the "voice" market is dominated by Telkom and cell 
phone providers  
they  will be looking to the data market and broad 
band  internet in  
particular for a reasonable portion of their  client base. 
It seems they  
intend to mix voice and data  networks to a far greater 
extent than  
Telkom does at  the moment. However without an 
SEP, they may  
have  to persuade the Government to let them go it 
alone,  and  
without external capital, their wings will be clipped  
before they start.   

Telkom on the other hand are not lying down. They  
have an  
established infrastructure and an established  client 
base. They are  
ready and waiting to defend  themselves from the new 
opposition -  
when it finally  arrives.   

In the meantime it is clear that the our current  
monopolistic  
situation is having a negative effect on  the 
development of the  
Internet in South Africa. Five  or ten years ago South 
Africa was a  
leader amongst  "developing" countries in the use of 
the internet.  
Since  then we have steadly been falling behind and 
today other  
countries like Brazil and India are far ahead of  us.  

Delegates from international organizations who have  
knowledge of  
the internet industry from many parts of  the world 
indicated that  
South Africa has one of the most draconian legislative 
frameworks  
regarding  internet and telecommunications.  

But the loudest complaints came from delegates  
responsible for  
non-profit and community based  projects. The 
Western Cape is a  
leader in this field and many local schools and 
libraries have  
internet  access, or will soon be getting it. A lot of the 
costs of   
providing this access has been sponsored by  
businesses etc.  
However much of this funding is  finding its way into 
Telkom's  
revenue in the form of  over priced leased line and 
dial-up call  
charges. They  also complained that their efforts to 
bring the  
internet  to rural communities and poor areas with 
limited   
infrastructure have been thwarted by the prohibition  
on the use of  
wireless technologies.   


ZSD's OBJECTIVES  

ZSD like the rest of the Internet Industry, cannot do  
much to  
change the above situation. We belong to  ISPA (The 
Internet  
Service Provider's Association of  SA ) and through 
them we have  
made representations  to ICASA, the Competition's  
Board and  
Government.  However it is clear that the situation is 
not going to   
change soon.    

In the meantime ZSD's objective is to provide our 
clients with the  
best possible Internet services  available within the 
limitations of the  
current  framework. We work to maximize their 
benefits from  the  
use of these services while avoiding unnecessary  
expenditure.  
Finally we strive to maintain a stable  service and to 
steer our  
customers away from  expensive mistakes.  


Regards  

Ian Forbes  
-- 
Ian Forbes ZSD
http://www.zsd.co.za
Office: +27 21 683-1388  Fax: +27 21 674-1106
Snail Mail: P.O. Box 46827, Glosderry, 7702, South 
Africa