Margin squeeze and uncompetitive behaviour is nothing new to any ISP dealing in the South African broadband arena.ISPA (Internet Service Providers Association) has been very vocal on this issue. In their recent submission to the Competition Commission this organization, which officially represents South African ISP’s, asked the authority to look into Telkom’s wholesale ADSL pricing models and service provisioning.
South Africa has traditionally been a very tough market in which to address possible anticompetitive behaviour by the local telecoms giant, but in Europe the situation is very different.
Financial Times recently reported that the Spanish telecommunications group Telefónica was officially charged for anti-competitive behaviour by the European Union’s top competition regulator.
These antitrust charges revolved around the undermining of competition from broadband rivals through margin squeeze.