/ 6 March 2002

Telkom, Icasa tariff spat reaches court

Johannesburg | Tuesday

A COURT application by the Independent Communications Authority of South Africa (Icasa) against the legality of Telkom’s revised tariffs is to be heard in the Pretoria High Court on Tuesday.

The matter was postponed on January 29 at the request of both parties.

Telkom intended bringing its own application on Tuesday to have Icasa’s tariff regulations set aside.

On December 31, Judge Chris Botha rejected Icasa’s application for an urgent interdict forbidding Telkom from putting its tariff adjustments into effect on January 1.

Botha ruled that the parties return to court to argue whether the price adjustments were valid, or violated Icasa regulations promulgated in November.

Telkom filed its proposed new tariff structure with Icasa on November 14 — 30 business days before it was due to become effective.

The ministerial determination which governed Telkom tariffs lapsed in May 2000. Telkom argues that its new tariff structure — in the absence of a new regime was in line with that determination.

Icasa’s new regulations were proclaimed on November 26.

The price adjustments range from decreases in the cost of certain services to a 23,9% rise in the cost of domestic calls within a 50km radius.

The regulator claims the new tariffs exceed the limits it has determined, and are therefore invalid. Icasa’s new regulations limit price increases to 9,5%.

During the December hearing, Telkom undertook to reimburse customers should the court declare its tariffs invalid. – Sapa