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South Africa: Telkom on high-alert after competition ruling

By  |  January 21, 2014

A settlement reached last June between the South African Competition Commission and state-owned telco Telkom has reportedly placed the company and its staff on edge as the firm looks to reform its business to comply with competition standards.

After job cut announcements as the settlement with authorities, Telom will be forced to alter its practices after authorities found the company to have acted anticompetitively between 2005 and 2007.

Since, Telkom head Sipho Maseko sent a note to his employees, warning that the year ahead will be tough for the firm but that the company will ultimately pull ahead.

Among the issues raised by the Competition Commission includes concern over Telkom’s separate wholesale and retail operations, providing a margin squeeze against rival Internet service providers, say reports. Since, the company has adopted a new policy to guide employees along competition standards.

Full Content: ITWeb

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