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16 April 2013

Telkom and Competition Commission reach agreement on R449m fine

Telkom today announced that it had reached an agreement with the Competition Commission to pay a fine of R449-million that was awarded by the Competition Tribunal in August 2012.

The agreement was reached following discussions between Telkom and the Competition Commission aimed at arriving at a settlement regarding Telkom's appeal and the Commission's cross-appeal to the Competition Appeal Court.

The appeal and cross-appeal respectively concern a ruling delivered by the Competition Tribunal on 7 August 2012, relating to the case between Telkom and the South African Value Added Networks Services Association (SAVA) and various other complainants.

Telkom said in a statement today that the parties had reached agreement on 15 March to the effect that, subject to confirmation by the Competition Appeal Court (CAC), each party would withdraw its appeal and cross-appeal respectively and each party would pay its own costs.

The withdrawal of the appeal and cross-appeal was approved by the CAC on 12 April and the CAC's confirmation was communicated to Telkom on 16 April 2013.

Telkom will therefore pay the fine of R449-million that was originally awarded by the Tribunal. The terms of the agreement provide for Telkom to pay 50% of the amount within six months of the date of the withdrawal (12 April 2013). The balance is to be paid within 18 months of the said date of the withdrawal.

For further enquiries, please contact:

Pynee Chetty

Senior Specialist: Media Relations

Group Communication

Tel:+27 12 642 1716

Mobile: +27 81 389 7874

Email: chettpr2@telkom.co.za

OR

Leigh-Ann Francis

Specialist: Media Relations

Group Communication

Tel: +27 12 642 1728

Mobile: +27 81 391 4780

Email: francilm@telkom.co.za

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ABOUT TELKOM:

Telkom is a leading communications services provider in South Africa. We had consolidated operating revenue of R16.8 billion and normalised profit after tax of R1, 683 million for the period ended 30 September 2015. Total assets amounted to R41.9 billion and equity attributable to the owners of Telkom to R23.5 billion as of 30 September 2015. The group generated normalised free cash flow of R1.4 billion for the period ended 30 September 2015.

As of 30 September 2015, we had approximately 3.3 million telephone access lines in service and 1,030,441 ports connected via MSAN access. We offer business, residential and payphone customers a wide range of services and products, including:

  • fixed-line retail voice services using PSTN (Public Switched Telephone Network) lines, including ISDN (Integrated Services Digital Network) lines, and the sale of subscription based value-added voice services and calling plans;
  • fixed-line customer premises equipment rental and sales services both voice and data needs and these include PABX, Computers, Routers, Modems, Telephone handsets and other ancillary equipment;
  • interconnection services, including terminating and transiting traffic from South African mobile operators, as well as from international operators and transiting traffic from mobile to international destinations;
  • fixed-line data services, including domestic and international data transmission services, such as point-to-point leased lines, ADSL (Asymmetrical Digital Subscriber Line) services, packet-based services, managed data networking services and internet access and related information technology services;
  • Data Centre Operations includes e-commerce, application service provider, hosting, data storage, e-mail and security services;
  • W-CDMA (Wideband Code Division Multiple Access), a 3G next generation network, including fixed voice services, data services and nomadic voice services;
  • mobile communication services, including voice services, data services and handset sales through our mobile navbar-brand called Telkom Mobile;
  •  information and communication services including cloud services, infrastructure services, workspace services, global service integration management and hardware and network equipment sales locally, in seven African countries, the UK and Dubai through Business Connexion Group; and
  • other services including directory services, through Trudon (Pty) Ltd, wireless data services, through Swiftnet (Pty) Ltd.

Convergence is one of our key strategic initiatives in building a sustainable future for Telkom.  We will lead the provision of converged services in South Africa in support of our mission statement: Seamlessly connecting people to a better life.