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Telkom to resolve Internet complaints

Telkom looks set to restore its tarnished image after it paid a hefty fine for blocking competition.

N/A

JOHANNESBURG - South African fixed line operator Telkom SA said on Tuesday that it had reached a settlement with the Competition Commission to resolve a series of complaints lodged by Internet service providers.

The settlement includes a R200 million administrative penalty payable in cash over 25 months, Telkom said in a statement.

Telkom agreed in April to pay a separate R449 million fine for using its dominant position to block competition from other network providers.

The _ Business Day_newspaper reports that Telkom will split its wholesale and retail divisions as part of the deal struck with the Commission.

The agreement has raised the possibility of Telkom's structure changing, splitting the parastatal into two businesses.

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