Telkom has complained that media reports gave the impression the company had been tried and found guilty of breaking the Competition Act.
“This is not the case,” the company’s legal group executive, Mandla Ngcobo, said on Wednesday.
Telkom was responding to the Competition Commission’s decision on Tuesday to refer certain of the complaints brought against Telkom in 2002 by the South African Value-Added Network Services Association (Sava) and Omnilink to the Competition Tribunal for determination.
The complaints were lodged by network services providers offering e-mail, internet access and electronic data interchange services.
“We will respond to the Competition Commission’s referral in due course, once we have been served with their notice of motion,” Ngcobo said.
He said: “It was unfortunate that press reports created the impression that Telkom had already been tried, found guilty and fined.”
He said Telkom had cooperated fully with the Competition Commission in its investigations, but their findings were only preliminary.
“The matter will now serve before the Competition Tribunal where the allegations will be fully aired,” he said.
Business Day reported that the commission has recommended a fine of up to 10% of Telkom’s annual revenue, which was R37,6-billion in the year ending March 2003.
Forfeiting up to R3,7-billion would easily wipe out Telkom’s 2003 net profit of R1,6-billion, to pay for tactics the commission said had not only stifled telecommunications sector but had hindered South Africa’s economic development in general, Business Day reported.
But Telkom said it could prove to the tribunal it had not contravened the Competition Act.
“It is by no means a foregone conclusion that the Competition Tribunal will uphold the findings of the commission, or impose this remedy on Telkom. The Act also allows for an appeal process, and it is irresponsible to speculate on the outcome of the legal process,” said Ngcobo. — Sapa
Telkom faces fine of billions