Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Vumatel tops a million subscribers in South African broadband milestone - Dietlof Mare

      Vumatel tops a million subscribers in South African broadband milestone

      9 February 2026

      Washington takes on Beijing in race for Africa’s critical minerals

      9 February 2026
      Vodacom drops R5.6-billion for spectrum in key market

      Vodacom dropping R5.6-billion for spectrum in key market

      9 February 2026
      Nersa blunder triggers sharper electricity tariff increases

      Nersa blunder triggers sharper electricity tariff increases

      9 February 2026
      Eskom unbundling U-turn threatens to undo hard-won electricity gains

      Eskom unbundling U-turn threatens to undo hard-won electricity gains

      9 February 2026
    • World
      Musk hits brakes on Mars mission

      Musk hits brakes on Mars mission

      9 February 2026
      Crypto firm accidentally sends R700-billion in bitcoin to its users

      Crypto firm accidentally sends R700-billion in bitcoin to its users

      8 February 2026
      AI won't replace software, says Nvidia CEO amid market rout - Jensen Huang

      AI won’t replace software, says Nvidia CEO amid market rout

      4 February 2026
      Apple acquires audio AI start-up Q.ai

      Apple acquires audio AI start-up Q.ai

      30 January 2026
      SpaceX IPO may be largest in history

      SpaceX IPO may be largest in history

      28 January 2026
    • In-depth
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
    • TCS
      TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

      TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

      30 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels S1E3: ‘BYD’s Corolla Cross challenger’

      30 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels S1E2: ‘China attacks, BMW digs in, Toyota’s sublime supercar’

      23 January 2026

      TCS+ | Why cybersecurity is becoming a competitive advantage for SA businesses

      20 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels: S1E1 – ‘William, Prince of Wheels’

      8 January 2026
    • Opinion
      South Africa's skills advantage is being overlooked at home - Richard Firth

      South Africa’s skills advantage is being overlooked at home

      29 January 2026
      Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

      Why Elon Musk’s Starlink is a ‘hard no’ for me

      26 January 2026
      South Africa's new fibre broadband battle - Duncan McLeod

      South Africa’s new fibre broadband battle

      20 January 2026
      AI moves from pilots to production in South African companies - Nazia Pillay SAP

      AI moves from pilots to production in South African companies

      20 January 2026
      South Africa's new fibre broadband battle - Duncan McLeod

      ANC’s attack on Solly Malatsi shows how BEE dogma trumps economic reality

      14 December 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » How Telkom allegedly crushed competition

    How Telkom allegedly crushed competition

    By Editor25 October 2011
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    James Hodge of Genesis Analytics has painted a stark picture of wide-ranging anticompetitive abuses, including excessive pricing and price discrimination, allegedly committed by Telkom in the last decade.

    Hodge is presenting this week to the Competition Tribunal in its hearings into alleged anticompetitive behaviour by Telkom. Genesis Analytics has been engaged by the Competition Commission to provide an economic assessment of the allegations raised by the commission against Telkom.

    The commission wants the tribunal to impose a fine of 10% of Telkom’s 2003 revenue, which equates to more than R3,5bn, for alleged abuses of its dominant position in telecommunications in SA.

    In a formal submission by Genesis, the company says value-added network service (Vans) players — these were independent Internet and telecoms service providers — were “completely dependent on Telkom for the provision of telecoms facilities”.

    Telkom stands accused of price discrimination and engaging in “exclusionary strategies”, including the refusal to supply essential facilities as well as conduct designed to induce customers not to deal with competitors. “These actions, both individually and collectively, impacted negatively on competition,” Genesis says.

    According to the report, Telkom’s pricing of access to telecoms facility to Vans providers and their customers “can reasonably be characterised as excessive [and] in contravention of … the Competition Act”.

    Genesis assessed whether Telkom’s practice of charging its customers a lower price for Diginet access relative to what was charged to Vans providers and their customers constituted prohibited price discrimination. It found it did and says this had the effect of “substantially lessening and preventing competition”.

    Telkom’s pricing conduct could also be characterised as “exclusionary”.

    “The effect of Telkom’s discriminatory pricing strategy is that it placed the independent Vans providers at a severe competitive disadvantage vis-à-vis Telkom in the downstream Vans market,” the report says.

    “The independent Vans providers were all saddled with significantly higher access fees, which negatively impacted on their ability to compete against Telkom in the provision of Vans”.

    Telkom also engaged in a “range of exclusionary strategies involving the refusal to supply essential facilities as well as conduct designed to induce customers not to deal with competitors”.

    The report finds that protections given to Telkom in law were not as broad as those the company sought to impose through standard form contracts. It says further that Telkom’s refusal to supply additional telecoms links to Vans providers contributed to them being less effective competitors.

    “Considered collectively, the numerous strategies employed by Telkom made it increasingly difficult for the Vans providers to compete against Telkom,” Genesis says in its report.

    “By artificially reducing the competitiveness of independent Vans providers through the application of discriminatory access charges and through engaging in a number of exclusionary strategies, Telkom was able to enhance its share of the downstream Vans market at the expense of its competitors.”

    Also, Telkom‘s conduct “not only hindered the ability of its competitors to compete in the market, it also formed the basis for the decision of a large Vans provider to effectively exit the market, contributed to the decision of another Vans provider to suspend the provision of [virtual private network] services for a number of years and discouraged further investments by competitors.”

    Telkom is expected to begin arguing its case before the tribunal from 1 December.  — Duncan McLeod, TechCentral

    • Subscribe to our free daily newsletter
    • Follow us on Twitter or on Facebook
    • Visit our sister website, SportsCentral (still in beta)


    Genesis Analytics James Hodge Telkom
    WhatsApp YouTube Follow on Google News Add as preferred source on Google
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleReview: Logitech’s Wrls Spkr Bluetooth adapter
    Next Article Vodacom plays down uncapped mobile broadband

    Related Posts

    Vumatel tops a million subscribers in South African broadband milestone - Dietlof Mare

    Vumatel tops a million subscribers in South African broadband milestone

    9 February 2026
    Mobile operators face tougher rules on data and billing

    Mobile operators face tougher rules on data and billing

    26 January 2026
    South Africa's telecoms sector enters a new growth phase

    South Africa’s telecoms sector enters a new growth phase

    19 January 2026
    Company News
    Beyond the prompt: Why the future of enterprise AI is hybrid and agentic - LSD Open

    Beyond the prompt: Why the future of enterprise AI is hybrid and agentic

    9 February 2026
    The skills gap is a thinking gap: why South African employers can't find problem solvers

    The skills gap is a thinking gap: why SA employers can’t find problem solvers

    6 February 2026
    Vox Kiwi Wireless: fibre-like broadband for South African homes

    Vox Kiwi Wireless: fibre-like broadband for South African homes

    5 February 2026
    Opinion
    South Africa's skills advantage is being overlooked at home - Richard Firth

    South Africa’s skills advantage is being overlooked at home

    29 January 2026
    Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

    Why Elon Musk’s Starlink is a ‘hard no’ for me

    26 January 2026
    South Africa's new fibre broadband battle - Duncan McLeod

    South Africa’s new fibre broadband battle

    20 January 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Vumatel tops a million subscribers in South African broadband milestone - Dietlof Mare

    Vumatel tops a million subscribers in South African broadband milestone

    9 February 2026

    Washington takes on Beijing in race for Africa’s critical minerals

    9 February 2026
    Beyond the prompt: Why the future of enterprise AI is hybrid and agentic - LSD Open

    Beyond the prompt: Why the future of enterprise AI is hybrid and agentic

    9 February 2026
    Vodacom drops R5.6-billion for spectrum in key market

    Vodacom dropping R5.6-billion for spectrum in key market

    9 February 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}