Telkom has withdrawn an appeal against a 2003 Pretoria High Court ruling which found that least-cost routing (LCR) was a legal practice, parties to the matter said on Monday.
Telkom advised Nashua Mobile, one of some 12 respondents in the matter, of the withdrawal on Monday, said Nashua Mobile managing director Mark Taylor.
The matter was to have been heard in the Supreme Court of Appeal in Bloemfontein next Monday.
”The settlement secures the future of South Africa’s R2-billion a year LCR industry,” he said.
It also cleared the way for businesses of all sizes to take advantage of the cost savings LCR offered ”secure in the knowledge that it is no longer a legal grey area”.
Telkom spokesperson Xolisa Vapi confirmed that the matter ”was put to rest” on strategic grounds. He would not elaborate.
Nashua Mobile explained LCR as a solution enabling customers to connect GSM-based equipment to a PABX — giving them lower call rates when dialing from one cellular device to another or between numbers on the same cellular network.
It allows one to route calls to cellular phones via whatever network provided the best price — even routing the dialing of Telkom landline numbers over cellular networks.
LCR clients saved at least 25% on their calls, Nashua Mobile said. Some corporate customers saved about R1,5-million a month. – Sapa