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Wholesale and Retail Business Split Forces Telkom to Play Nice

Author: Compare Guru
Date: 2014-02-13
A new ruling by the Competition Tribunal will force Telkom to split their retail and wholesale business.
As of January 2014, Telkom has had to split their Retail and Wholesale business according to a ruling filed by the Competition Tribunal in June last year. A new code of conduct was issued to Telkom employees, which draws a line in the sand between special treatment and fair play between the Retail and Wholesale employees. They are no longer allowed to share competitive confidential client information between themselves because it violates the ethical code of the Competition Tribunal. This new code of conduct stipulates that Telkom Wholesale employees are not allowed to give preferential treatment in the form of requests by employees from the Telkom Retail department. This would include sharing confidential information from rival operators such as client information and product-plan models. Failing to comply with the new code would possibly result in disciplinary action, however Telkom assured that all whistle-blowers would receive protection. The CEO of Telkom, Sipho Maseko, briefed his employees about the new code of conduct and added, “We are also developing a separate competition compliance training programme for relevant employees on competition issues.” The split between the two departments may in fact result in faster delivery of cable broadband services as many industry analysts have suggested over recent years. Simon Leps, Fontera Digital Works CEO, told News24 that Telkom’s split should enforce the commercial division to compete with other service providers. He said, “That way there is a single company that is responsible for providing broadband and fixed line infrastructure to all others in SA. It also stops Telkom from being its own customer and forces it to provide a level playing field for all other ISPs.” The Competition Tribunal’s ruling is aimed at reducing prices for cable broadband because other companies would be able to compete fairly and thus enabling more of the South African populous to gain broadband access. Read the original article here: Images courtesy of ©Diane Moalem for Compare Guru

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