Telkom is to challenge a ruling by the Independent
Communications Authority of South Africa that its refusal to supply certain services to two value-added network service (Vans) providers was illegal, the utility said on Tuesday.
But Peter Davies, managing director of American communications giant AT&T in South Africa, one of the two companies involved, has hailed Icasa’s decision.
”This ruling not only augurs well for the future of the telecommunications industry in South Africa, but also for future competition within the industry,” he said.
”It is a landmark ruling that will see a much more liberalised approach to the provision of services in South Africa.”
The ruling emanates from complaints which Telkom submitted to Icasa in 2000, when it still had exclusive rights to provide fixed-line telephone services, and a subsequent counter-complaint by AT&T filed last year.
Telkom alleged that AT&T and another company, the Internet Solution, were encroaching on its monopoly by providing services beyond those allowed for by their Vans licences.
Vans providers are internet and other networking firms that offer services like data, e-mail and secure methods for electronic payment and commerce.
Telkom withheld certain facilities from the Vans providers on the basis of its suspicion that such lines were used for voice calls over internet networks, which the Vans providers were not
licensed to provide.
Icasa ruled in favour of AT&T and the Internet Solution, saying Telkom contravened the Telecommunications Act by refusing the services.
It also found that in doing so, Telkom committed an
uncompetitive action in terms of the Act.
Icasa said Telkom’s actions were likely to result in undue preference to its own Vans supplier, Equant.
Davies said that if Telkom accepted the finding, Vans and internet service providers would be able to get additional facilities like band width and lines.
”Any resistance to this ruling flies in the face of free enterprise and freedom of choice,” he said.
Telkom representative Andrew Weldrick said: ”We will be seeking a review of both rulings.”
Telkom was still consulting its legal advisers to decide how to take the matter further, he said. – Sapa