Telkom abused its near-monopoly, says CompCom

And in other completely unrelated news, telkom prices will be going up about 10% ....


What I find quite interesting is this:
"Telkom's prices were more than double"
"were 30% more expensive than the average"

Total fine? ... 10%...
 
These comparisons indicated, amongst other things, that in 2006 Telkom's prices were more than double the average of South Africa's major trading partners. Furthermore, in 2007, Telkom's prices were 30% more expensive than the average of a basket of 14 countries.
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From over 100% in 2006 to only 30% in 2007 - wonder why I do not remember any reduction in my bills.
 
Well i think we should all actaully welcome the fine, im glad something was done about it and that it was not felt unoticed.
 
Freaksta said:
Well i think we should all actaully welcome the fine, im glad something was done about it and that it was not felt unoticed.
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I would welcome a reduction in price more :)
 
Freaksta said:
Well i think we should all actaully welcome the fine, im glad something was done about it and that it was not felt unoticed.
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I totally disagree. They will just raise their prices to make the money back. They should be forced to charge cost plus 10% for services like IPConnect. A once-off fine is going to do nothing...
 
This is unacceptable,

The CompCom should not be giving Telkom a fine, they should be forcing Telkom to drop their prices instead...

Damnit.
 
Telkom shares fell by 2.6% - to R 42.95 - at 14:00 today.
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This is more due to Telkom's credit rating being downgraded by Moody's than this news.
 
eltherza said:
And in other completely unrelated news, telkom prices will be going up about 10% ....


What I find quite interesting is this:
"Telkom's prices were more than double"
"were 30% more expensive than the average"

Total fine? ... 10%...
Click to expand...
IIRC that is the max fine allowed by the Competition Act.
 
"near-monopoly"? Telkom is still the ONLY residential fixed line provider in South Africa and still the ONLY ADSL provider in South Africa.
 
pkid said:
I totally disagree. They will just raise their prices to make the money back. They should be forced to charge cost plus 10% for services like IPConnect. A once-off fine is going to do nothing...
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Telkom should get the fine and ICASA should insist a cost plus basis for all wholesale products to registered licensees - especially their ipconnect services.

Wonder which other companies are in the making to receive their fines for anti-competitive behaviour....
 
But we all knew this? Jeez, the people in government and regulatory authorities are slow...
 
*****ing excellent news! But we could have told you that years ago! I wonder why its only happening now.

To be honest... For the sake of progress and to catch up the time we lost wrt to telkom anti-competitive behaviours, I say instead of fining them, force them to unbundle the Local Loop ASAP. Plus all other services cost plus margins.

Fining them is going to make a loose loose situation for everyone... Rather think progressively and lets move forward!
 
I don't think that this addresses the problem. What now stops Telkom from raising it's prices to compensate for the loss? They should rather look into accelerating the LLU process.
 
Mercurious said:
I don't think that this addresses the problem. What now stops Telkom from raising it's prices to compensate for the loss? They should rather look into accelerating the LLU process.
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Dont price increases have to be okayed by ICASA?
 
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