The Competition Commission has recommended Telkom be fined up to R3-billion for contravention of the Competition Act and said Telkom's anti-competitive behaviour was likely to have a serious impact on both the information, communication and technology sector and the country's wider economic development.
In a stinging rebuke of the parastatal's conduct in the market for value-added network services (Vans), Commissioner Menzi Simelane said the results of an 18-month investigation revealed that Telkom "has abused its dominant position by engaging in a pattern of anti-competitive practices". He added that Telkom had attempted to expand its monopoly beyond that envisaged by the Telecommunications Act.
"The anti-competitive practices include Telkom imposing unreasonable conditions for it to provide telecommunication services to the Vans. Telkom refuses to provide these facilities unless the Vans providers conclude contracts, which subject them to Telkom's dictates.
"As the Vans cannot operate without these facilities and must obtain them from Telkom, they have no choice but to subject themselves to Telkom's dictates," said Simelane.
The investigation followed complaints by the South African Value Added Network Services Association, Omnilink and others. These parties provide services, such as
email, electronic data interchange and Internet. All of these services involve telecommunications, which is Telkom's area of monopoly.