Telkom: Pushing for R20.5m fine after years of abuse

ADSL South Africa (Broadband South Africa), 20 February 2012

The Competition Commission seems to be dead serious about punishing Telkom for its past sins. It is however of outmost importance that Telkom doesn’t get punished as an entity.

Let’s allow the process of reasoning to run its cause, wild and unrestricted…

Any reasonable person can certainly understand that imposing a fine of R3.5bn on Telkom for illegal anti-competitive practices during the past might be a bit steep, especially if it leads to its financial ruin. However, the fact that Telkom has the audacity to push for a fine of only R20.5m, giving the extent to which they have raped us and still do in certain aspects (ADSL line rental, et cetera), then they sure as hell deserve what is coming their way. ADSL South Africa (Broadband South Africa) supports the Competition Commission’s notion that Telkom should at least be fined R1.2bn, especially giving Telkom’s “over-exaggerated” argument that a large fine might sink their whole operation. In fact, the Competition Commission should impose the maximum fine of R3.5bn, but allow them to pay it off over time and not all at once. It will certainly not sink them, but they will certainly feel how it feels to be constantly raped. In fact, a much better idea might be to go after the Telkom executives who have certainly benefitted the most from illegal anti-competitive practices, while doing nothing to stop it. As one commentator at TechCentral states: “It's a pity that the senior execs overseeing this egregious abuse of dominant position cannot also be fined, retroactively, 10% of the wages in the affected year. Telkom is an entity, the real sinners are the toss-pots running the show at the time and who thought they were above the law... Punish the senior execs, not Telkom” (Telkom pleads for leniency in competition case, TechCentral, BritinSA, 15 February 2012). Yes, it certainly makes more sense to go after the “toss-pots” than to go after Telkom as an entity. If one gets all emotion out of the way, as clearly visible in the initial spurts in our thought process, then logic dictates that a fine imposed on Telkom as an entity will indirectly be a fine imposed on many Average Joes as well, because Telkom will certainly transfer the cost to us in one way or another. In fact, as top trends forecaster, Gerald Celente, has stated in an interview with Eric King of King World News: “The banks want to get repaid for making bad debts along with their hedge funds” (Gerald Celente Interview, King World News, 12 February 2012). Celente has stated this in reference to the austerity measures the banking powers have implemented in places such as Greece, measures which are designed to punish the Average Joes for the sins of the bankers. Unfortunately, the same twisted logic of the banking powers apply in the case of punishing Telkom as an entity for illegal anti-competitive practices. Therefore, rather seek and impose fines on the “toss-pots” that were responsible for the practices. Yes, we know that the bulk of the “toss-pots” have left Telkom and are hiding overseas, but there must surely be ways to get around that obstacle, or not?

ADSL South Africa (Broadband South Africa) would love to see Telkom getting fined R3.5bn, but leaving all emotion aside, it makes more sense to demand that the Telkom executives or “toss-pots” who were responsible for imposing illegal anti-competitive practices upon us Average Joes, get punished.