The Internet Service Providers’ Association (Ispa) on Tuesday lodged a broad-ranging complaint with the Competition Commission regarding its claims that Telkom conducts anti-competitive activities in the sector.
A large number of ISPs compete with Telkom for the provision of internet services, but most of them are forced to obtain their underlying telecommunications services from the fixed-line monopoly, the association said.
“Ispa’s complaint to the Competition Commission follows an increasing stream of complaints from Ispa’s members,” the association’s joint chairperson Masedi Molosiwa said.
“From the smallest ISPs right through to the largest, the reports are the same: Telkom is using its dominant market position to take business away from other ISPs. We want the Competition Commission to take a good, hard look at the way the market is structured, and make sure that our members are able to compete fairly to provide reasonably priced services to their customers.”
In the retail market, the monopoly determines the price that resellers must pay for SAIX ADSL accounts, Ispa claimed, adding that similar problems exist in the wholesale market where Telkom controls access to the international bandwidth and local loop access services.
“It also competes directly with those resellers in the guise of TelkomInternet. This enables Telkom to squeeze the margin between the wholesale and retail price, so that competitors cannot afford to stay in business,” the association said.
Ispa claimed that Telkom’s position of being both a supplier and a competitor allows the fixed-line operator to force other ISPs out of the market.
Telkom said in a statement on Tuesday afternoon that it has noted the complaint lodged by Ispa with the Competition Commission.
“The Competition Commission will now investigate the matter and due process will follow. At this stage, Telkom cannot comment on the content or allegations made in the complaint,” the statement concluded. — I-Net Bridge