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
      Perfect storm for South African tech buyers

      Perfect storm for South African tech buyers

      23 March 2026
      GoMetro to launch electric minibus taxis on Cape Town routes from October - Justin Coetzee

      GoMetro puts a date on its electric minibus taxi launch

      23 March 2026
      Meet the CIO | HealthBridge CTO Anton Fatti on the future of digital health

      Meet the CIO | HealthBridge CTO Anton Fatti on the future of digital health

      23 March 2026
      Open banking is growing in South Africa - but not for everyone

      Open banking is growing in South Africa – but not for everyone

      23 March 2026
      Cape Town BNPL start-up Happy Pay raises R86-million in seed funding

      Cape Town BNPL start-up Happy Pay raises R86-million in seed funding

      23 March 2026
    • World
      It's official: ads are coming to ChatGPT

      It’s official: ads are coming to ChatGPT

      23 March 2026
      Mystery Chinese AI model revealed to be Xiaomi's

      Mystery Chinese AI model revealed to be Xiaomi’s

      19 March 2026
      A mystery AI model has developers buzzing

      A mystery AI model has developers buzzing

      18 March 2026
      Samsung's trifold gamble ends in retreat

      Samsung’s trifold gamble ends in retreat

      17 March 2026
      Nvidia targets $1-trillion in AI chip sales as inference demand surges - Jensen Huang

      Nvidia targets $1-trillion in AI chip sales as inference demand surges

      17 March 2026
    • In-depth
      The last generation of coders

      The last generation of coders

      18 February 2026
      Sentech is in dire straits

      Sentech is in dire straits

      10 February 2026
      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
    • TCS
      TCS+ | Arctic Wolf unpacks the evolving threat landscape for SA businesses - Clare Loveridge and Jason Oehley

      TCS+ | Arctic Wolf unpacks the evolving threat landscape for SA businesses

      19 March 2026
      TCS+ | Vox Kiwi: a wireless solution promising a fibre-like experience - Theo van Zyl

      TCS+ | Vox Kiwi: a wireless solution promising a fibre-like experience

      13 March 2026
      TCS+ | Flipping the narrative on AI in the Global South - Josefin Rosén

      TCS+ | Flipping the narrative on AI in the Global South

      13 March 2026
      TCS | Sink or swim? Antony Makins on how AI is rewriting the rules of work

      TCS | Sink or swim? Antony Makins on how AI is rewriting the rules of work

      5 March 2026
      TCS+ | Bolt ups the ante on platform safety - Simo Kalajdzic

      TCS+ | Bolt ups the ante on platform safety

      4 March 2026
    • Opinion
      South Africa's energy future hinges on getting wheeling right - Aishah Gire

      South Africa’s energy future hinges on getting wheeling right

      10 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Apple just dropped a bomb on the Windows world

      5 March 2026
      VC's centre of gravity is shifting - and South Africa is in the frame - Alison Collier

      VC’s centre of gravity is shifting – and South Africa is in the frame

      3 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Hold the doom: the case for a South African comeback

      26 February 2026
      The AI fraud crisis your bank is not ready for - Andries Maritz

      The AI fraud crisis your bank is not ready for

      18 February 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • Mitel
      • 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
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • 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)
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Genesis Analytics James Hodge Telkom
    WhatsApp YouTube
    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

    MTN and Vodacom dwarf South Africa's listed tech sector

    MTN and Vodacom dwarf South Africa’s listed tech sector

    20 March 2026
    How a WhatsApp bundle exposed a fault line in SA mobile

    How a WhatsApp bundle exposed a fault line in SA mobile

    19 March 2026
    Telkom to hike mobile and fixed tariffs from 1 April - Lunga Siyo

    Telkom to hike mobile and fixed tariffs from 1 April

    6 March 2026
    Company News
    AnyDesk - high-performance remote access built for the modern enterprise

    AnyDesk – high-performance remote access built for the modern enterprise

    23 March 2026

    How South African executives can crack the AI ROI code

    20 March 2026
    Africa's first Nvidia RTX Pro GPU servers have landed

    Africa’s first Nvidia RTX Pro GPU servers have landed

    19 March 2026
    Opinion
    South Africa's energy future hinges on getting wheeling right - Aishah Gire

    South Africa’s energy future hinges on getting wheeling right

    10 March 2026
    Hold the doom: the case for a South African comeback - Duncan McLeod

    Apple just dropped a bomb on the Windows world

    5 March 2026
    VC's centre of gravity is shifting - and South Africa is in the frame - Alison Collier

    VC’s centre of gravity is shifting – and South Africa is in the frame

    3 March 2026

    Subscribe to Updates

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

    Latest Posts
    Perfect storm for South African tech buyers

    Perfect storm for South African tech buyers

    23 March 2026
    GoMetro to launch electric minibus taxis on Cape Town routes from October - Justin Coetzee

    GoMetro puts a date on its electric minibus taxi launch

    23 March 2026
    Meet the CIO | HealthBridge CTO Anton Fatti on the future of digital health

    Meet the CIO | HealthBridge CTO Anton Fatti on the future of digital health

    23 March 2026
    Open banking is growing in South Africa - but not for everyone

    Open banking is growing in South Africa – but not for everyone

    23 March 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}