Telkom refund could be far off

Johannesburg, 28 Jan 2002

Telkom and the Independent Communications Authority of SA (ICASA) are due in court tomorrow to resume their battle over the new Telkom rate structure, but the matter is not expected to be settled for several months.

ICASA lost the first round on 31 December last year when the Pretoria High court declined to issue an injunction against Telkom increasing its rates the following day. The result was immediate implementation of new telephone rates that saw certain services increase by more than 50%.

ICASA contends that the increase was far above that allowed by its rate regime, while Telkom argues that the rate regime was not in force at the time it filed its increases and therefore does not apply.

Tomorrow`s hearing is expected to be a short affair where mutually agreed timelines for the rest of the case are to be determined. The acting head of ICASA`s legal department, Siyabonga Madyibi, says the body would like to expedite the process but does not expect full hearings to start for at least another two months.

"There is no likelihood at all that the matter will be heard tomorrow; there will be no arguments heard," he says.

ICASA plans to file a supplement to its original affidavits, while Telkom will move ahead with an application to have the regulations declared invalid, both of which will take considerable paperwork and time.

While the case continues consumers and businesses are legally obliged to pay their full Telkom accounts. ICASA, however, wants to see some of that money refunded if it wins its argument.

"The basis of this case is the fact that consumers are being overcharged by Telkom," says Madyibi. "If the court finds that to be substantial Telkom must refund them."

The refund the body will ask for will be the difference between the increase its regulations allow and that actually implemented by Telkom. It will differ from user to user depending on call patterns, but could range from 1.5% to more than half of the monthly bill.