The Independent Communications Authority of SA (ICASA) today issued a statement denying that it planned to withdraw from its legal challenge of Telkom`s recent rate increases.
Reports this morning stating that the authority would withdraw from the case were based on comments by CEO, Nkateko Nyoka. But the body says those comments "merely reflected discussions going on within the organisation". It said it had not withdrawn from the case but that it was concerned about the costs of the litigation.
"The authority is currently weighing up how to allocate its scarce financial resources and is in discussion with government in this regard," the statement reads. "We continue to hope that government, as the majority shareholder in Telkom, will take steps to resolve the problem in the interests of consumers."
ICASA councillors could not immediately be reached for further comment.
The purported withdrawal was seen as a major blow to consumers who have been paying what in some cases amounts to increases of more than 50% on telephone services. The Pretoria High Court denied ICASA`s application for an injunction preventing the increase, finding that the balance of convenience lies with Telkom, which claims it would lose R100 million a month if the increases were prevented.
A new hearing has been scheduled for 29 January. Should ICASA prove that the increases are illegal under its regulations, Telkom could be forced to reimburse any users who pay accounts based on the new tariffs in the meanwhile.
ICASA chairman Mandla Langa has said that the court case is about more than the cost of a phone call and will test whether Telkom can be forced to abide by regulations.
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