Telkom has backed down from threats to disconnect equipment that enables companies to route their phone calls over cheaper cellphone networks.
Business Day reports that the retreat comes in the face of threatened legal action by the Independent Cellular Service Providers` Association (ICSPA).
ICSPA applied for an interdict after Telkom threatened to disconnect the equipment of several companies. The action has forced Telkom to retreat and agree not to disconnect any further equipment or to issue threatening letters to that effect.
"Telkom was using threats of removing equipment in an attempt to crush competition," said Gianfranco Cicogna, a member of ICSPA and chairman of Orion Cellular. "This was an attempt to scare clients away from making use of alternative network services. Telkom was sending letters to clients threatening to disconnect the equipment so we applied for an urgent interdict."
The dispute is over what is known as least cost routing, sometimes called corporate connect, in which companies alter their telephone exchange to route calls off the Telkom network and onto the cellphone networks, with significant savings.
A number of organisations provide equipment to achieve these ends including Nokia, which has a product called PremiCell.
A high court case to determine their legality will be heard on 24 February, with Telkom arguing that MTN and Vodacom are engaging in illegal practices. Telkom is also seeking an interdict against five service providers to prevent them from selling the devices.
If Telkom wins, companies will be forced to disconnect their systems and pay Telkom fees.
Telkom did not respond to requests for information in time for publication.
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