The Community Payphone Association of South Africa (Copasa) staged a march in Rivonia this afternoon to protest against Cell C`s "unfair competition practices".
In a memorandum handed to Cell C`s legal representative at its Rivonia offices, the organisation expressed unhappiness with Cell C`s decision to roll-out community payphones in high teledensity areas.
In the memo, members stated they were going out of business because of Cell C`s competitive pricing.
Cell C`s roll-out of community payphones is also in conflict with its operator`s licence, according to Copasa secretary Paul Mabiya. He accuses Cell C of misinterpreting the definition of where community payphones should be located.
The association has tried other ways of resolving the matter, without results, he says. This includes holding meetings with Cell C`s legal department and reporting the matter to the Independent Communications Authority of SA (ICASA).
ICASA has been ineffective in resolving the matter, as the regulator is used to dealing with matters that affect mobile operators, not small business owners, he says.
Cell C acted within its licence parameters and with ICASA approval, says Jonathan Newman, advisor to Cell C`s CEO Talaat Lahman. He says the company acted in good faith and was careful to ensure legal and regulatory compliance.
"Cell C acted in the best interests of consumers as well as local entrepreneurs who operate community payphones," he says.
"Why should we force consumers to pay higher prices in a free market economy in order to protect someone else?" he asks.
The memorandum will become part of a court process, says Newman. He expressed confidence that the courts would find in Cell C`s favour, as the company acted in good faith.
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