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
      Dis-Chem's earnings slide as its tech spending doubles

      Dis-Chem’s earnings slide as its tech spending doubles

      30 October 2026
      Intel's comeback hits a wall

      Intel’s comeback hits a wall

      30 October 2026
      R99 grocery subscription war: Pick n Pay takes on Checkers

      R99 grocery subscription war: Pick n Pay takes on Checkers

      30 October 2026
      Icasa's fingerprint Sim plan runs into major telco resistance - Nomvuyiso Batyi, CEO of the Association of Comms & Technology

      Icasa’s fingerprint Sim plan runs into major telco resistance

      30 October 2026
      Binance hit by $6.3-billion hack, the biggest crypto heist ever

      Binance hit by $6.3-billion hack, the biggest crypto heist ever

      30 October 2026
    • World
      Alleged Israeli spy company heavily targeted Starlink users

      How online ads were used to hunt Starlink users

      28 October 2026
      Anthropic's IPO stands alone

      Anthropic’s IPO stands alone

      23 October 2026
      PHP flaws trigger global scramble as hackers pounce

      PHP flaws trigger global scramble as hackers pounce

      22 October 2026
      OpenAI turns the tables on Apple in trade secrets fight

      OpenAI turns the tables on Apple in trade secrets fight

      15 October 2026
      Google's Gemini 4 Argon is finally here

      Google’s Gemini 4 Argon is finally here

      14 October 2026
    • In-depth
      Why investors are souring on Netflix

      Why investors are souring on Netflix

      22 October 2026

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
    • TCS
      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      26 October 2026
      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs - Réan van Niekerk, Metacom

      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs

      23 October 2026
      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf - Jason Oehley and Andre Den Hond

      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf

      22 October 2026
      W&W | LDV's Gerhard Moolman on electric bakkies, fleet orders and 'school fees'

      W&W | LDV’s Gerhard Moolman on electric bakkies and fleets

      9 October 2026
      TCS | Frogfoot sees bigger fibre deals coming - TechCentral Show guests Abraham van der Merwe and Shane Chorley

      TCS | Frogfoot sees bigger fibre deals coming

      8 October 2026
    • Opinion
      AI's boardroom honeymoon is over - Gary Stocks

      AI’s boardroom honeymoon is over

      22 October 2026
      Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

      Before South Africa licenses Starlink, it should look at Ukraine

      21 October 2026
      Nonkqubela Thathakahle Jordan-Dyani

      Why cybersecurity is now a national security issue for South Africa

      15 October 2026
      When a machine can choose, who does it become? Fanie van Rooyen

      When a machine can choose, who does it become?

      9 October 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Let South Africans jailbreak their way to digital sovereignty

      5 October 2026
    • Company News
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • 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
      • Fintech and payments
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » Telkom warns of financial ‘catastrophe’

    Telkom warns of financial ‘catastrophe’

    By Editor13 February 2012
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    Telkom's head office in Pretoria

    If the Competition Tribunal imposes a large fine on Telkom for anticompetitive behaviour, it will be “catastrophic” for the company and will “irretrievably jeopardise its viability”, leading to “disastrous consequences for the SA economy and for government”.

    This is the stark warning the fixed-line telecommunications operator has sent to the tribunal in the wake of a recommendation by the Competition Commission that Telkom be fined up to 10% of its 2003 revenues, or R3,5bn, for alleged monopolistic behaviour dating back to early last decade.

    The tribunal, which hasn’t imposed the maximum fine in other cases, is hearing closing statements in the case in Pretoria this week.

    Telkom stands accused of anticompetitive behaviour dating back to complaints lodged with the commission in 2004 by a number of value-added network service (Vans) providers.

    The commission found Telkom abused its dominance by charging excessive prices, engaging in price discrimination and refusing to allow other operators access to its “last-mile” infrastructure, which would have allowed these third parties to provide a broader range of services to customers.

    Telkom claims that if a large fine were imposed, it could cripple the company, impede its ability to maintain existing infrastructure and services, and could have drastic effects on SA companies that rely on its services.

    “It is no secret that Telkom’s financial performance has been under extreme pressure over the past few financial years,” Telkom says in its submission to the tribunal. “A penalty of the magnitude sought by the commission will … exceed the company’s profit by 56%. This will be catastrophic for Telkom.”

    The company’s submission says: “Since Telkom is still the largest supplier of fixed-line communication networks upon which banks, financial institutions, government departments, the defence force, police and industry rely, a fine of this magnitude will have disastrous consequences for the SA economy and government.”

    Telkom argues that not only was it entitled to behave in the way it did, but that it was obliged to in order to meet its roll-out obligations to government after it was partially privatised. It says if it had not limited rivals’ ability to compete, it would have been obliged to meet its burdens without the financial protection it was promised as part of its exclusivity rights granted in 1997.

    The company has also argued that the behaviour of which it stands accused no longer occurs and that the case is less relevant on account of the amount of time that has elapsed since the complaint was first brought. However, Telkom was itself responsible for the bulk of the delays, having questioned the tribunal’s authority in the matter at the supreme court of appeal (it lost).

    Adv Martin Brassey

    The Competition Commission argues that Telkom was able to divert business away from its Vans rivals, particularly when customers wished to expand their services and Vans providers were unable to meet these requirements. Though Telkom had allowed Vans companies to provide certain services to customers, it prevented them from expanding their offerings once it saw that it risked being made redundant by the Vans.

    Telkom’s legal team has expended a great deal of energy on the minutiae surrounding the case, but the commission advocate, Martin Brassey, says the tribunal must remember that the case does not concern “abstract abstruse concepts” but is only interested in “the facts”.

    There are two charges that could result in punitive measures being applied against Telkom. The first concerns the accusations that the company engaged in excessive pricing practices; the second relates to the withholding of essential services from Vans providers.

    If Telkom is found guilty on both fronts, the commission will push for a sizeable fine, but says it will pursue a lesser penalty if Telkom is found only to have withheld essential services.

    “Telkom has behaved very badly. That needs to be corrected and it needs to be corrected emphatically,” says Brassey. “Telkom had a monopoly and it abused that monopoly. [It] must feel the full impact of its anticompetitive conduct.”

    But Telkom argues that if a penalty is imposed it should be “nominal or symbolic in nature”, particularly because no evidence was presented during the hearings that suggest it profited substantially from its alleged contraventions.  — Craig Wilson, TechCentral

    • Subscribe to our free daily newsletter
    • Follow us on Twitter or on Google+ or on Facebook
    • Visit our sister website, SportsCentral (still in beta)
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Competition Commission competition tribunal Martin Brassey Telkom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleTelkom back in the competition dock
    Next Article Mozilla to offer touch-based Firefox for Windows 8

    Related Posts

    Icasa's fingerprint Sim plan runs into major telco resistance - Nomvuyiso Batyi, CEO of the Association of Comms & Technology

    Icasa’s fingerprint Sim plan runs into major telco resistance

    30 October 2026

    Former Icasa chairman Paris Mashile has died

    26 October 2026
    Openserve, Huawei test fibre-ready state housing in KZN

    Openserve, Huawei test fibre-ready state housing in KZN

    23 October 2026
    Company News
    Paratus continues to reshape connectivity in Namibia

    Paratus continues to reshape connectivity in Namibia

    29 October 2026
    Rate hikes threaten a household recovery built on cheaper credit - John Gellatly

    Rate hikes threaten a household recovery built on cheaper credit

    29 October 2026
    Choosing the right AI path for banks and large enterprises - Matthew Barnard BBD

    Choosing the right AI path for banks and large enterprises

    29 October 2026
    Opinion
    AI's boardroom honeymoon is over - Gary Stocks

    AI’s boardroom honeymoon is over

    22 October 2026
    Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

    Before South Africa licenses Starlink, it should look at Ukraine

    21 October 2026
    Nonkqubela Thathakahle Jordan-Dyani

    Why cybersecurity is now a national security issue for South Africa

    15 October 2026

    Subscribe to Updates

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

    Latest Posts
    Dis-Chem's earnings slide as its tech spending doubles

    Dis-Chem’s earnings slide as its tech spending doubles

    30 October 2026
    Intel's comeback hits a wall

    Intel’s comeback hits a wall

    30 October 2026
    R99 grocery subscription war: Pick n Pay takes on Checkers

    R99 grocery subscription war: Pick n Pay takes on Checkers

    30 October 2026
    Icasa's fingerprint Sim plan runs into major telco resistance - Nomvuyiso Batyi, CEO of the Association of Comms & Technology

    Icasa’s fingerprint Sim plan runs into major telco resistance

    30 October 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • 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}
    🇿🇦 Sign up to the TechCentral newsletter