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
      South Africa's stablecoin silence is becoming a policy failure

      South Africa’s stablecoin silence is becoming a policy failure

      6 February 2026
      Every electric car you can buy in South Africa in early 2026, ranked by price

      Every electric car you can buy in South Africa in early 2026, ranked by price

      6 February 2026
      From stocks to crypto, markets reel as AI doubts grow

      From stocks to crypto, markets reel as AI doubts grow

      6 February 2026
      South Africa deepens China ties as US trade tensions escalate

      South Africa deepens China ties as US trade tensions escalate

      6 February 2026
      Big changes at Lesaka as Bank Zero deal nears completion - Lincoln Mali

      Big changes at Lesaka as Bank Zero deal nears completion

      6 February 2026
    • World
      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
      Nvidia throws AI at the weather

      Nvidia throws AI at weather forecasting

      27 January 2026
      Debate erupts over value of in-flight Wi-Fi

      Debate erupts over value of in-flight Wi-Fi

      26 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 » News » Telkom on rapacious pricing: gov’t let us do it

    Telkom on rapacious pricing: gov’t let us do it

    By Editor21 October 2011
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Don’t blame Telkom for using its monopoly to strangle the local Internet sector — the government allowed it to.  This seems to be a recurring theme in Telkom’s defence of its rapacious pricing being heard by the Competition Tribunal.

    The telecommunications giant stands accused of abusing its dominance by charging excessive prices, refusing access to an essential facility and engaging in price discrimination, thereby making its downstream rivals less competitive.

    The hearing kicked off on Monday this week, with the first round running until 28 October, but Telkom’s witnesses were absent and are only expected to take the stand in the second round from 1 to 9 December.

    Behind the scenes at Telkom’s headquarters in Pretoria, head honchos were in negotiations with KT Corp (formerly Korea Telecom) to sell a 20% stake to the multinational.

    But Telkom’s answering affidavit gave some indication of how it would defend itself.

    Telkom legal adviser George Candiotes, who wrote the affidavit, said the “conduct of which the commission complains” was “justified by the relevant legislation”.

    In the affidavit, Telkom stated: “I shall indicate below that, in relation to the majority of the complaints contained in the complaint referral, the Telecommunications Act and the PSTS [public switched telephone service] licence justified the performance of the very conduct of which the commission complains.”

    Vans providers
    Telkom, according to the affidavit, felt that its monopoly, created following several roll-out obligations it accepted from the government when it was privatised, gave it the power to prevent value-added network service (Vans) providers from delivering some services.

    “Allowing Vans providers to take a share of the benefits of offering PSTS would have undermined the very essence of the regulatory deal,” said the affidavit.

    “It would have put Telkom in the position of earning less from its exclusivity rights than expected while still having to incur the costs of the obligations.”

    But it has been widely reported that Telkom did not meet those roll-out obligations.

    It has also been reported that SBC (now AT&T), Telkom’s American shareholder at the time, temporarily transferred its entire San Antonio corporate office legislative team to SA to help draft the Telecommunications Act, to make sure the legislation conformed to its requirements.

    In the affidavit, Telkom makes much of the time that has passed since the Competition Commission referred the case to the tribunal, arguing that the practices that were under the spotlight no longer existed.

    But it was Telkom itself who caused most of the delays.

    The case dates back to 2002 when a complaint was lodged with the commission by 21 entities, including the SA Vans Association, the Internet Service Providers’ Association and 19 other Vans providers.

    By February 2004, the commission had completed its investigation and referred its case against Telkom to the tribunal. But Telkom challenged the commission’s jurisdiction in the supreme court of appeal, a legal move that resulted in a five-year delay to the tribunal hearing, which Telkom ultimately lost.

    Several subsequent legal challenges followed based on the commission’s decisions to amend its papers, which have since been resolved, and the case finally reached the tribunal.

    The hearing kicked off with the testimony of Mike Brierley, a tele­coms consultant and former CEO of MTN Network Solutions. The Mail & Guardian understands that Brierley’s testimony is key to the commission’s case.

    On Wednesday, Telkom lodged objections to the tribunal hearing, arguing that the commission’s evidence was going beyond the scope of its initial complaint.

    The M&G understands that the tribunal is waiting for the commission to respond formally to Telkom’s objections before they are heard.

    When asked for comment on the tribunal hearing, Telkom spokesman Pynee Chetty said: “We don’t litigate in the media. We won’t comment before the hearing.”  — Lloyd Gedye, Mail & Guardian

    • Visit the Mail & Guardian Online, the smart news source
    • Subscribe to our free daily newsletter
    • Follow us on Twitter or on Facebook


    Competition Commission competition tribunal George Candiotes Korea Telecom KT Corp Mike Brierley MTN SBC Telkom
    WhatsApp YouTube Follow on Google News Add as preferred source on Google
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleFNB: free phones, tablets next?
    Next Article Trade union wary of Telkom’s Korea talks

    Related Posts

    MTN Group in talks to buy out IHS Towers

    MTN Group in talks to buy out IHS Towers

    5 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
    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
    NEC XON achieves an African first with full Fortinet accreditation - Ian Kruger

    NEC XON achieves an African first with full Fortinet accreditation

    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
    South Africa's stablecoin silence is becoming a policy failure

    South Africa’s stablecoin silence is becoming a policy failure

    6 February 2026
    Every electric car you can buy in South Africa in early 2026, ranked by price

    Every electric car you can buy in South Africa in early 2026, ranked by price

    6 February 2026
    From stocks to crypto, markets reel as AI doubts grow

    From stocks to crypto, markets reel as AI doubts grow

    6 February 2026
    South Africa deepens China ties as US trade tensions escalate

    South Africa deepens China ties as US trade tensions escalate

    6 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}