The tribunal hearing was conducted in February this year and the Commission alleged that Telkom refused to supply essential access facilities to independent value-added network service providers.

Telkom allegedly induced its customers not to deal with vans, charged their customers excessive prices to access services and favored its own customers by giving them a discount on distance-related charges.

Telkom did not deny it acted illegally, but argued it was justified in acting that way. Telkom claimed that by providing valued-added services, the vans providers were engaged in illegal conduct. Telkom further argued that the vans providers had adopted a business model that effectively trespassed on Telkom's exclusivity rights.

The Tribunal ruled that Telkom's conduct resulted in a substantial lessening of competition in the vans market.

Telkom is expected to pay half the penalty within six months of the Tribunal's decision and the balance within 18 months. However, the company said it is still studying the judgment by the tribunal and promised to make an announcement about it in due course.