The Internet Service Providers' Association (ISPA) has lauded the Competition Tribunal's decision to slap Telkom with a R449 million fine for abusing its monopoly, saying it sets a precedent that will indirectly benefit the consumer.
On Tuesday, the protracted investigation into Telkom's anti-competitive dealings between 1999-2004 came to a head. The tribunal found SA's fixed-line incumbent guilty of refusing to supply essential facilities, limiting competition in the sector. Telkom now has six months to pay half of the penalty, with the balance payable within 12 months of that.
ISPA says the move, the first to be made by the tribunal against Telkom, is a vindication of the association's “long and arduous battle of principle”. ISPA co-chairman Marc Furman says: “Thanks to the Competition Commission's commitment to pursuing this matter, [which ISPA and other complainants] embarked on way back in 2002; it is now hopefully at an end.”
Acute analysis
Furman says the association is grateful to the parties who were involved in ensuring the original complaint was submitted and heard. “Those ISPA and SAVA (South African Value-Added Network Association) members who incurred the considerable time and expense of testifying against Telkom come in for special mention.”
The tribunal specifically found Telkom guilty of refusing to supply facilities to ISPA members and of trying to induce its customers not to deal with Telkom's competitors - behaviour that was described as “bullying” by the tribunal.
ISPA says the important thing is that a precedent has been set. “While the matter relates to the period 1999-2004, the decision is very much relevant to today's market, which remains characterised by vertical integration and anti-competitive pricing and other practices.”
The decision, says Furman, will hopefully have an indirectly positive impact on the consumer by drawing a clear line around conduct which violates SA's Competition Act.
“Hopefully, this conveys an unambiguous message not just to Telkom, but to the entire telecoms industry, that such practices are unlawful and those undertaking them will be held to account.”
Telkom has said it is “in the process of studying the judgment and its implications, and if necessary, a follow-up announcement in this regard will be considered in due course”.
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