Telkom facing ‘up to USD450m’ competition fines

16 Feb 2012

Telkom South Africa went before a competition tribunal yesterday, facing potential fines of up to SAR3.5 billion (USD450 million), reports AllAfrica quoting SABC news. The Competition Commission has accused Telkom of excessive pricing and market abuse. Eight years ago, an investigation by the commission found that Telkom was guilty of charging excessive wholesale prices to smaller independent companies for provision of network infrastructure for data services including internet access and SMS messaging. The commission also found that Telkom was discriminating against the independent service providers in that its charges were less for companies affiliated to it. In the event of the charges being upheld, Telkom is expected to argue for the proposed large penalties to be reduced significantly as they would threaten the telco’s ability to continue operating.

South Africa, Telkom South Africa