Altech hits back, saying it protected consumers
Altech was given leave to intervene in the merger proceedings between MTN and Verizon South Africa on the basis of unlawful competition practices identified by an internationally renowned economist.
Altech added that MTN’s punitive tariffs in respect of VoIP over data at R21.93 – rather than R1.75 per megabyte – is a 1000% increase on standard data rates and another reason why it decided to intervene.
The company said that notwithstanding the truncated periods imposed by the Competition Tribunal on Altech and all of the parties to the merger at the behest of the merging parties, Altech’s lawyers and economists prepared a concise case elaborating on these theories of harm.
“After some weeks of discussions between MTN executives and Altech executives, MTN conceded certain general undertakings to assuage Altech’s competition concerns in respect of the dangers of an integrated network owning one of South Africa’s major independent ISPs,” Altech said.
“These undertakings were the subject of negotiations at senior counsel level. MTN’s senior counsel participated in the finalization of such negotiations and was well aware of MTN’s desire to give the undertakings in order to give Altech sufficient comfort not to pursue its intervention.”
Altech said that it accordingly rejects the comments by MTN’s senior counsel to the Competition Tribunal quoted in the Business Day that Altech in any way backed down from the matter or that it changed its views on the merger.
“Altech has always stated that it intervened to prevent cross subsidization and bundling by a merged MTN / Verizon and through its intervention in this merger has achieved this stated objective for the entire industry.”
“It is unfortunate that senior counsel made direct attacks on Altech in its absence knowing full well the circumstances which gave rise to Altech’s withdrawal and in this regard Altech has reserved all of its legal rights and furthermore will be addressing the comments of MTN’s senior counsel directly before the Bar Council,” said Altech.
Altech has successfully litigated against the Minister of Communications to promote the liberalization of telecommunications in South Africa, and it feels that the Verizon intervention was a further step in this direction.
“As a result of Altech’s intervention, MTN has assured the Competition Authorities that it will now not discriminate between VoIP and data and will not be levying its more than 1000% punitive surcharge for VoIP,” said Altech.
Craig Venter, CEO of Altech states that "this is a victory for the South African cellular consumer and once again Altech has paved the way for the liberalizing of South African telecommunications".
Did Altech protect consumers? Give your views
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