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Telkom has date with tribunal

Johannesburg, 21 Jan 2011

Fixed-line operator Telkom is set to appear before the Competition Tribunal in May to defend a charge of abuse of dominance.

Telkom will face charges based on a 2002 complaint by the then value-added (VANS) providers to the Competition Commission. Hearings into the matter are set to take place between the end of May and the middle of June.

However, the almost seven-year-old case could be delayed even further if the commission seeks to amend the charges that Telkom is set to face.

The VANS accused the fixed-line operator of abusing its market dominance by refusing to supply them with backbone and access facilities, unless they met Telkom's conditions. The commission referred the matter to the tribunal two years later.

The allegations have yet to be heard by the tribunal because of legal wrangling. Hearings were delayed after Telkom disputed the commission's jurisdiction, and then the commission wanted to amend its original referral.

The tribunal dismissed the commission's application to amend its original referral to add another charge. The tribunal says the commission had not given enough reasons to amend its application.

However, the commission can add another charge to its compliant, if it can substantiate its charges, says the tribunal. Telkom opposed the commission's application to add a new charge, saying it would delay proceedings and was prejudicial.

Telkom also faces another referral from the commission, which was filed with the tribunal in 2009 and has yet to be heard. The telco faces a fine of up to 10% of its revenue in each of the cases, which could amount to about R7 billion in total.

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