M-Web, SA's largest consumer-focused Internet service provider, has filed a complaint against Telkom at the competition commission, accusing the monopoly fixed-line operator of "margin squeeze" in broadband services. It also wants Telkom to pay for an upgrade to the "peering" link between Telkom and Dimension Data's Internet Solutions, which provides its bandwidth.
CEO Kim Reid says that because of the way Telkom structures its tariffs, it is not possible for M-Web to make a profit selling Internet access using the operator's broadband lines.
Reid thinks M-Web's complaint is the first case of alleged margin squeeze to be brought before the commission. Several incumbent operators in Europe, including Germany's Deutsche Telekom and Britain's BT Group, have faced similar allegations.
Telkom spokesman Xolisa Vapi says the carrier cut its broadband line rental fees on August 1. This, he says, undermines the basis of M-Web's complaint.