Telkom and the Competition Commission have been engaged in discussions 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 07 August 2012, relating to complaints laid against Telkom by the South African Value Added Networks Services (SAVA) and various other complainants.
On 15 March 2013, the parties reached agreement that, subject to confirmation by the Competition Appeal Court, 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 Competition Appeal Court ('CAC') on 12 April 2013 and the CAC's confirmation was communicated to Telkom on the 16 April 2013. Accordingly, Telkom will pay the fine that was originally awarded by the Tribunal in the sum of R 449 million of which 50% is payable within 6 months from date of the withdrawal, and the balance to be paid within 18 months of the said date of withdrawal. Provision was made for these amounts in the company's reported results for the six months to 30 September 2012.
16 April 2013
Sponsor to Telkom:
Standard Bank of South Africa Limited