Internet Caviar

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Internet access is like caviar for people in Slovakia. The cost of Internet access is high and it is a barrier for users. There are a lot of differences in the Internet options between Slovakia and other OECD members. The monopoly of Slovak Telecom builds walls for Slovak users. Injustice exists on the side of provider companies in their business. The attitude toward Internet has to be changed in our society from being a luxury to being available to everyone.
In comparison with other OECD members in the facts show the differences. According to OECD Online, the average cost to users to access the Internet, for 20 hours per month at peak times, fell by 24 per cent, between October 1999 and September 2000, and 21 per cent at off-peak times. For 40 hours of peak usage per month, including telecommunication charges, the average price of Internet access fell by 27 per cent at peak times and 26 per cent at off-peak times. The greater gains for 40 hours are based on the introduction of unmetered access options in several countries. The major development highlighted in the latest OECD survey is the strengthening trend toward unmetered telecommunication prices to access the Internet. Consumers in countries such as Australia, Canada, Mexico, New Zealand and the United States already have unmetered Internet access. In these countries options are available so that the charges users pay do not vary with the amount of time they spend online allowing them to benefit from an ‘always-on’ environment. Telecommunication carriers in Germany and the United Kingdom have introduced options for unmetered access to the Internet at peak and off-peak times. In Hungary, Korea and Spain, unmetered options have been introduced for off-peak times (OECD Online, 2001, p. 1). On the other hand, the rate for two-minute connections – the time many businesses use for checking emails – rose 80% in Slovakia. Meanwhile, the cost of using the Internet for Slovaks for one hour at off-peak times rose 26%, while the hour rate at peak time increased by under
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1% (“Telecom Price Rises”, 2001, pp. 1, 6). “When we look at these figures and compare them with Slovakia, we see that Slovaks pay the highest rate for Internet connection of all OECD members,” said Marián Ďurovčík, IT manager at the Slovak Technical University in Bratislava (“Telecom Price Rises”, 2001, p. 6).

The trend of the progress in Slovakia is not going in the same direction as is in other OECD states; nonetheless, the Slovak Republic is a member like others. Their membership should also be reflected in the Internet conditions, in the government’s vision and in changes of outlook toward the Internet. The business policy of Slovak Telecom is not lucrative to Internet users. Slovak Telecom has a monopoly on the Slovak Internet access market; consequently, the market of telecommunications is not flexible enough. It reflects in the pricing policy of Slovak Telecom. Slovak Telecom introduced a special fee of 1.50 crowns for dialing up to the net. The rate is paid whether the user gets connected to the server or not. (“Telecom Price Rises”, 2001, p. 6) “The concept of charging a per minute pulse rate for the privilege of connecting a computer to the Internet is absolutely ludicrous,” said Jozef T. Gazarik, an American interested in Slovak matters (“Free market would remove the barriers”, 2001). “We have to accept the new rates because of ST’s monopoly. It would make sense to cancel ST’s monopoly,” said Róbert Šajty, operation manager at water cooler installation firm Dolphin Slovakia (“Telecom Price Rises”, 2001, p. 6). The policy of Slovak Telecom on Internet pricing has drawn it into conflict with IT and educational groups in Slovakia in the past, and earlier this year saw the firm fined 10 million crowns by the anti-monopoly office for abusing its monopoly status. Some businesses said that little could improve before Slovak Telecom lost its monopoly in 2003 (“Telecom Price Rises”, 2001, p. 6). There is no other choice in this case because of ST’s monopoly, which will be canceled in 2003 when new operators come on the telecommunication market. The loss of ST’s monopoly will certainly improve the attitude toward the Internet in Slovakia. Internet Caviar p. 3
The provider companies make business to profit. Is that business just? These companies provide Internet; in other words, they are selling it. However, there is no owner of the Internet! There is nobody to whom the Internet belongs! “I have to pay 300 Skk monthly for all-day Internet access at home”, said Matúš Klement, a student of BSBA, City University, Trenčín (Interview, 2001, November 3). In contrast, four companies exist in the Czech Republic – including Czech Telecom – which provide Internet without fee. On the other hand, there is no company in Slovakia such as in the Czech Republic. One provider company (called Kiwwi) provides Internet access without fee in Slovakia; however, the quality and speed of transferring data is not comparable.

The Internet access market is free for provider companies and is available for competition; moreover, the end-user will profit from their competition. Healthy competition on the market can create the positive changes for people to have Internet access.
It is not a luxury to have Internet access; consequently, the attitude to the Internet has to be modified, in order to take advantage of the information technology and its usage in the business. In comparison with OECD members, Slovakia has a lot of steps to make in order to follow other countries. Pulling down walls, which are built by ST’s monopoly will certainly help the Internet access market in Slovakia. Changes in Slovak laws can create positive conditions for provider companies in order to form healthy competition, not unjust business. Changes always take time, and it will also take time in this case to make Internet caviar available to everyone.




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References

Barecz, P. (2001, July 16-19). Telecom Price Rises Seen as Internet Barrier. The Slovak Spectator. pp. 1, 6.
Financial Investors Pick up the Scent of Telecom. (2001, October 12). Prague Business Journal [Online]. URL [2001, October 15].
Gazarik, J. (2001, July 30-August 13). Free market would remove the barriers. The Slovak Spectator [Online]. URL [2001, October 19].
Holt, E. (2001, September 3-9). ST’s Monopoly Wilting Under Customer Defection to Mobiles. The Slovak Spectator [Online]. URL [2001, October 10]. Klement Matúš, Nové Mesto nad Váhom, 2001, November 3 (Interview).
Local Access Pricing and E-commerce. (2001, May 23). OECD [Online]. URL [2001, October 25].
OECD Internet Access Price Comparison. (2000, October 23). OECD [Online]. URL [2001, October 25].