Telkom files notice of appeal against Competition Tribunal ruling
Telkom announced today that the Company has filed a notice of appeal against the ruling by the Competition Tribunal in the case between Telkom and the South African Value Added Networks.
Telkom will now have forty business days to file the record of appeal before the matter can be set down for hearing by the Competition Appeal Court.
"This is a very complex matter,” said Telkom Group CEO, Ms Nombulelo Moholi. “We have indicated our intention to exercise our option to appeal. We will use the next forty days to seek opinion from senior counsel and will evaluate our position before the expiry of this period."
The ruling, issued on 7 August 2012, found that Telkom was in breach of sections 8(b) and 8(d)(1) of the Competition Act, Act 89 of 1998, imposing a fine of R 449 million.
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Telkom is a leading communications services provider in South Africa and on the African continent. We had consolidated operating revenue from continuing operations of R33.1 billion and profit for the year from continuing operations of R179 million for the year ended 31 March 2012. Total assets from continuing operations amounted to R52.6 billion and equity attributable to the owners of Telkom to R29.7 billion as of 31 March 2012. The group generated free cash flow of R2.1 billion for the year ended 31 March 2012.
As of 31 March 2012, we had approximately 4.0 million telephone access lines in service and 99.9% of our telephone access lines were connected to digital exchanges. We offer business, residential and payphone customers a wide range of services and products, including:
- fixed-line subscription and connection services to post-paid, prepaid and private payphone customers using PSTN (Public Switched Telephone Network) lines, including ISDN (Integrated Services Digital Network) lines, and the sale of the subscription based value-added voice services and customer premises equipment rental and sales;
- fixed-line traffic services to post-paid, prepaid, and payphone customers, including local, long distance, fixed-to-mobile, international outgoing and international voice-over-internet protocol traffic services;
- 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 centre operations and internet 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;
- e-commerce, including internet access service provider, 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, data services and handset sales through its mobile brand called 8•ta; and
- other services including directory services, through Trudon (Proprietary) Limited, wireless data services, through Swiftnet (Proprietary) Limited and internet services outside South Africa, through iWayAfrica Group (integration of Africa Online Limited and MWEB Africa Limited).