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The eve of a fight

The upcoming war between RomTelecom and a bunch of clients, who require cheaper telephone costs for data transmissions (i.e. Internet), known as AntiRomTelecom, looks inevitable. Albeit the means of wagging this war are not very clear, the reasons are justified.

The story began five months ago – November 1998 – when a group of hackers started developing some technical schema for avoiding the taxation of their phone line, schema known as " the black box". They created a page on the net and presented the solution by which an ordinary RomTelecom client could by-pass the National Telephone Company in his attempt to speak as long as he wants – with, eventually, no pay.

Although such an avoidance is not legal – and therefore this article will not back up its case – the reasons that led to it are obvious: the rising tariffs that RomTelecom practices for internal phone calls and data transmittal.

It is notorious that RomTelecom has a monopoly in the fixed telephony business (and that it will keep it until late 2002). But, what is less known is that this isn’t a private monopoly at all, but a very public one, since OTE is a state-owned Greek company. Which says a lot about the investment plans – amounting around $2 bn -, which the Greeks have boasted with. So, if the Greek State decides not to spend money here, the cash won’t come. Learn more about it by watching the rivalry between Connex and Dialog, two mobile telephony companies. Connex has so far attracted the biggest chunk of mobile customers, whereas Dialog, though not a laggard at all, comes always the second in every category: quality, services, networks and not least, number of clients. The root of this cause, as explained in an study by Deloitte&Touche, a consultancy, is that France Telecom, the leading shareholder of MobilRom (Dialog) is a state-owned company, whereas behind Connex lies a group of private investors. So, don’t bank on such big investment plans, in case of RomTelecom. We haven’t seen so much money so far!

Going back to our story, the AntiRomTelecom organization realized that demanding cheaper tariffs from the position of a phantom group which backs up fraud is not the solution. So, encouraged by the fact that, abroad, they found a lot of cases like theirs – interestingly, even in Greece – they decided to change their name – now CAIR (The Romanian Community of Internet Subscribers) - and methods, and fight a legal battle for their cause. (Albeit they should strongly consider too to take off from their net page the black box schema)

The first steps began by going to RomTelecom and talking straightforward about the problem: cheaper tariff for phones lines and differentiating the tariffs between data transmission and ordinary phones ones. Somehow, RomTelecom bullshited them that, starting April 1 they will get important reduction for data transmittal between 23.00 PM and 07.00 AM. Indeed the reduction is in place now and for 10 minutes you only pay 400 lei. But, following the first of April we, the ordinary subscribers, found out that the reduction operates also for phone calls. Which means it’s no difference between one tariff and the other. Which means also that no progress has been made.

Moreover, the Public Relations Manager of RomTelecom denied this week the negotiating process took place at all. And, I should remind that, from the first of April the daytime tariff for internal calls rose by 26%, from 315 lei/impulse to 400 lei/impulse. The way a monopoly sets the tariffs is not to be known. But RomTelecom says that its decision is based on the depreciation of the national currency and inflation rate. Although a raise in tariffs is justified in an inflation-prone economy, for the internal phone calls, this should be the only reason for the raise. The exchange rate between the Leu and the $ affects only the external costs. But for the internal tariff the inflation rate should be the only element to affect the price.

Even if this would be the case, it is appalling why the inflation rate for the first two months being just 12-and-something percent, the prices for phone calls grew by 26%. Understandingly, RomTelecom has to gain something from the raise, and this should definitely be more than the inflation rate, but to add such a margin is purely to disconsider the client. Moreover, the situation is even more dangerous because nobody can oppose to this measure. The citizens especially, are not protected at all. They just have to pay more for the same services, because don’t expect that the up-mentioned margin be used to improve anything. No, things go very well for now. People pay because they must speak with each other. Hence their drama.

Since nobody acted on the behalf of the customer, CAIR – now a respectable over 800 members group, both firms or simple persons - tried to speak up again. They decided to protest during June 6 by not accessing the internet.

Yet, it is not clear what they’ll get. Refraining yourself from surfing the net is not, definitely a pleasure. I’d say that is pretty stupid to inflict yourself to make the other give up. It’s like a hunger strike: you are still the one to suffer, this time by a self-inflicted wound, whereas the others are not affected too much.

Still, things might not be that simple. CAIR talks of an European boycott on June 6 which will affect a great many telephone companies. This could prove very bad for RomTelecom. Yet, CAIR doesn’t explain anything about this protest such as why the others are protesting or what they want.

So the things are, for now, wobbled. It is unclear how the further protests will look like and what effects they will have. Notwithstanding, as said before, it is intolerable that RomTelecom raises the tariff at their very own and only will. The Greek should understand that dumb as they may look, the Romanians are not to be bullshited that easy. Or, at least, some of them like the CAIR’s people.

Mihnea Craciun

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12-05-1999 © 1998-1999 Comunitatea Abonatilor Internet din Romānia