/ 9 July 2004

Telkom claims victory over Transtel

Telkom claimed victory on Friday in its dispute with Transtel regarding the provision of international landline telephone links and threatened to sue the Transnet division for damages.

The dispute arose after Transtel filed a complaint against the former state utility at the Independent Communications Authority of South Africa (Icasa) in terms of Section 100 of the Telecommunications Act of 1996.

Telkom’s labour law executive Anton Klopper said Telkom consideres the manner in which the complaint was settled as ”no less than a capitulation by Transnet, and vindicates Telkom’s actions in discontinuing the services rendered to Transnet on the basis that the international telecommunication services provided by Transnet were illegal”.

He said Telkom has reserved its rights to pursue the matter further — with a view to claiming damages from the state-owned Transnet for Transtel’s conduct.

In a statement on Friday Klopper gave Transnet until midnight on Friday to ”discontinue and desist” from the provision of international telecommunication services in South Africa to any third parties.

The complaint arose when Transtel took Telkom to the High Court for an interdict to prevent Telkom from discontinuing the provision of certain telecommunication services to Transtel.

In November 2002 Telkom had cut off certain Transtel lines as Transtel was bringing international telecommunication traffic into the country.

Telkom viewed this as illegal.

Transtel submitted to the High Court that Icasa was the appropriate body to investigate the matter and rule on the question of legality.

In April last year, the High Court issued an order directing that Telkom be interdicted from discontinuing the services rendered to Transnet, pending the outcome of a Section 100 complaint, which Transnet was ordered to lodge with Icasa.

Transnet duly lodged its complaint against Telkom at Icasa and Telkom filed a response. The hearing took place at Icasa this week.

Transnet announced at the start of the hearing that it would discontinue bringing all international telecommunication traffic into South Africa via its teleport by August 31 and would accordingly withdraw the complaint.

But Telkom insisted that the activities cease with immediate effect, based on Telkom’s views that the activities were illegal. — Sapa