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Telkom's conduct ‘anti-competitive'

25 February 2004
Telkom's conduct ‘anti-competitive'
[Johannesburg, 25 February 2004] - The Competition Commission has ruled that Telkom's behaviour towards value-added network service (VANS) providers is anti-competitive.

The matter – which follows the commission's investigation into complaints lodged in 2002 against Telkom by the SA VANS Association (SAVA) and others – has been referred to the Competition Tribunal for determination.

It has also been reported that the commission has asked that Telkom pay an administrative fine of 10% of its annual turnover, which could amount to R3 billion.

Monopolistic advantage

A VANS is a telecommunication service provided to a customer over a telecommunication facility by a provider who is licensed to do so by the regulator, during which value – in the form of e-mail, electronic data interchange and Internet service provision, among others – is added for the benefit of the customer.

Since Telkom holds the monopoly on the telecommunic ...

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