• 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

  • Rich getting richer

    Economists differ on how to tackle the chasm between rich and poor, says Leopold Scholtz.

See More

Telkom mulling over tribunal judgment

Aug 08 2012 09:07 I-Net Bridge

Company Data


Last traded 82
Change 0
% Change -1
Cumulative volume 1293399
Market cap 0

Last Updated: 24-04-2015 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Telkom fine a slap on the wrist

Tribunal to rule in Telkom case

Telkom 'needs skills, not foreign money'

Telkom shares dive as Korean talks end

Union calls for Telkom bosses' heads

Telkom fined R449m


Johannesburg - Telecommunications provider Telkom [JSE:TKG] said on Tuesday it was still studying a judgment by the Competition Tribunal which found it guilty of abusing its dominance in the telecommunications market between 1999 and 2004 and slapped it with a hefty R449m penalty.

“Telkom is currently 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‚” the telecoms group said in a response to the verdict which saw its shares dive more than 3% in mid-morning trade before recovering.

Announcing its judgment on Tuesday morning‚ the tribunal concluded that Telkom leveraged its upstream monopoly in the facilities market to advantage its own subsidiary in the competitive value added network market.

“Telkom's conduct caused harm to both competitors and consumers alike and impeded competition and innovation in the dynamic VANS market.

"Half of the penalty is to be paid within 6 months of the Tribunal’s decision while the balance is payable within 12 months thereafter.”

The Competition Commission had asked the tribunal to impose an administrative penalty of R3.5bn. The commission wanted the fine to act as a deterrent for excessive pricing by other dominant companies.

The commission asked for an additional fine of R1bn for Telkom's refusal to give a competitor access to an essential facility.

The case against Telkom started in 2002 when value-added network service providers accused Telkom of exclusionary conduct and price discrimination.

More than 20 companies‚ including Internet Solutions‚ and the South African Value-added Network Services Association complained to the commission about Telkom’s conduct.

The case was referred to the tribunal in 2004‚ but hearings only began at the end of last year after several challenges to the competition authorities’ jurisdiction.

The service providers alleged that Telkom was denying them access to telecommunications infrastructure that would enable them to offer clients value-added services such as e-mail‚ internet access‚ protocol conversions and video conferencing.

*Follow Fin24 on Facebook, Twitter and Google+.




Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

Business tips from the world’s billionaires

We share some of the world's most successful people's greatest tips and who knows, this might just lead you to your first million!


Luxury living

5 millionaires turned murderers
The youngest billionaires in the world and how they made it
Watch: Flying first class has never been this luxurious!
What to expect inside a royal nursery

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote