Telkom does business with impunity

[cozinsky]

I just read on News24 that "the Competition Commission on Wednesday slapped South African Airways with a collective R55m fine in three complaints, including one of price fixing." I also know about instances where car manufacturers were imposed hefty fines for a similar market practise. Lately, the commercial banks were also asked to explain their high banking costs.

The question that begs to be answered is why is nothing done about Telkom's way of conducting business? In my view their actiongs are worse than price fixing. Or is it because they are protected by their main shareholder, the government? Or is it because these other businesses are easy targets?

 

[Tassidar]

I guess the answer lies in the fact that many companies are found guilty of colluding. However, Telkom being a legislated monopoly doesn't need to collude. It isn't disobeying any rules of competition, because there is no competition.

We can only hope that ICASA shows some teeth and introduces some rules for Telkom, however, this won't be the domain of the competition commission.

 

[Vio]

Actualy the compitition commision revered telkom too the compitition tribunal for anti-competitive business practise and they where fined something like 1 bilion rand or somthing then Telkom just threw their army of laywers at it and it has been tied up in court for years now.

 

[andres101]

I also know about instances where car manufacturers were imposed hefty fines for a similar market practise.

The fines were minor! If I remember correctly, they ranged from R50K to R300K.

 

[uberNoob]

Read this carefully - it will explain EVERYTHING about why Telkom is allowed openly rape the Telecomms industry in South Africa with immunity.....

Government owns a big share of Telkom. NOTHING will be done about or to Telkom until this changes. NOTHING !!!!!

When will these so called investigative jouranlists and 'opposition political parties' stop wasting their time with corrupt ministers, travelgate, oilgate etc. ? The amount of money involved there is NOTHING compared to how much the Government makes from YOU, the consumer everytime you pay money to Telkom.

 

[Tassidar]

UberNoob,
While I see your argument that government owns a large share of Telkom. Government does not act in government's interest per se. People act in their own self interest. So, if I were a shareholder in Telkom and a policy setter, I would have a conflict of interest.

Government is just a collection of individuals, so a far more accurate question is how many, if any shares in Telkom does Dr eek: ) Matseppi-Casaburri hold. If she does hold shares, this consitutues a serious conflict of interest, and should be declared. If she does hold shares and has not declared her interest, she is in violation of the most basic principles of good governance, and should be fired immediately (yeah right, like that is going to happen )

 

[uberNoob]

Agreed. However, as stated many times over, regulation of Telkom will not be done by the Government, or members of Government that hold shares in Telkom because they would be shooting themselves in the foot and adversely affecting their own bank balances.

The simple fact that a person (or group of persons) have a financial interest in company that they are supposed to regulate displays a conflict of interest. This is the exact reason why the telecoms 'regulator' should be completely separate from government, and should be given the power and support to enforce any regulations is imposes. This support and power can only be given to the regulator by government, and this will not happen when government has a vested interest in Telkom.

So yes, Telkom DOES operate with total impunity.