Last year, former CEO Sizwe Nxasana said Telkom would think twice about investing in EASSy if it was forced to reduce the fees it charged rival operators to use its bandwidth on Sat-3, a cable connecting Portugal to Johannesburg, in which Telkom owns a 13% stake.
The communications regulator is debating whether Sat-3 is an essential service, and whether it should force Telkom to cut its access fees.
If Telkom was forced to slash its fees and could not recoup its costs, it might withdraw from EASSy, Nxasana said. Yesterday Telkom said it was still considering the investment in the EASSy cable and had not made a final decision on the amount it planned to invest.