Cell C wants a go at MTN

Johannesburg, 04 Dec 2007

South African cellular operator Cell C will tomorrow apply to be considered as a participant in complaint proceedings between the Competition Commission and MTN.

The proceedings follow Cell C`s 2005 complaint to the Competition Commission that MTN was denying it access to an essential facility, engaging in exclusionary acts and partaking of price discrimination.

The Competition Commission upheld these claims and referred the matter to the Competition Tribunal for consideration.

However, Cell C contends the Competition Commission will not adequately represent its interest in the matter.

MTN conduct under fire

The Competition Commission`s July 2007 referral to the tribunal confirmed Cell C`s allegations that MTN had contravened the country`s Competition Act.

The commission notes MTN has engaged - and is engaging - in prohibited price discrimination against Cell C. This relates to the interconnection rate MTN is charging Cell C on calls originating from community service telephones (CSTs).

The commission highlights that Vodacom and Cell C are charged different interconnection rates, despite the CSTs being located in the same areas. MTN`s interconnection rate for Vodacom`s CST`s are fixed at R0.06, while it charges Cell C a commercial interconnection rate of R1.25 for calls during peak hours and R0.77 for off-peak calls.

The referral points out that this action is an example of MTN abusing its position of dominance and amounts to an exclusionary act. By refusing to charge Cell C the CST rate of R0.06, MTN is denying the operator access to an essential facility, the commission found.

Request to intervene

If Cell C`s application to intervene at the tribunal hearings is successful, the company will be able to attend and participate in the hearings between the Competition Commission and MTN. This includes all pre-hearing conferences and interlocutory proceedings.

Additionally, the company will be able to request the tribunal to summon people to attend the hearings, cross-examine witnesses, and present its own evidence and argument. It will also receive access to all documents for the hearing.

The application will be heard at 10am tomorrow.