26th August, 1997

Call-Back companies begin
court battle to quash ban


South African call-back companies have fired the first salvo in their legal battle to quash a ban served on the provision of call-back by the South African Telecommunications Regulatory Authority (SATRA) earlier this month.

Yesterday (August 25th) legal papers were served on SATRA by the recently formed South African Call-Back Association and 10 local call-back companies.

Many of South Africa's largest businesses and some Government departments have saved millions on international calls thanks to the cost-cutting trouble-free service offered by call-back companies.

The papers seek the setting aside of the ban on the grounds that SATRA acted beyond the power conferred on the body when it imposed the ban on Tuesday, 12 August, 1997.

The case is set down to be heard in the High Court of South Africa (Witwatersrand Division) on Thursday this week.

SATRA imposed the ban as its first major ruling since becoming operational in February, 1997.

At a press conference at the SATRA Head Office in Sandton, Johannesburg, on August 12, SATRA Chairperson, Mr Nape Maepa said that SATRA was acting to protect the current monopoly held over telecommunications in South Africa by Telkom.

He said that in terms of SATRA's ruling, call-back operators and their customers could face fines of up to R 500,000.00 or two years in prison, or both, if they continued to use call-back.

SATRA, however, does not have the power to arrest anyone. Alleged contraventions of SATRA's ruling would have to be referred to the South African Police Service who would have to forward the results of their investigations to the relevant Attorney general for his consideration.

If the matter reaches the courts, a decision would have to be made on the merits of each case.

Speaking after papers were served on SATRA yesterday, SA Call-Back Association chairman, Mr Gianfranco Cicogna said, "We firmly believe that SATRA has not applied its mind to the ramifications of its ruling and has acted unilaterally and unlawfully.

"The ban was imposed, we believe, without due process and without discussion with any call-back companies.

"This is particularly significant as we had been given the assurance by SATRA that we would be granted an opportunity to present our case.

"The least we - as a service association employing hundreds of people and fostering local business growth - could have expected in South Africas' new democracy was to have been consulted," he said.

He said that by claiming call-back illegal from September 1, SATRA had given call-back companies no time to wind down their operations.

"Even illegal casinos were given three months grace to allow them to attempt to find alternate employment for their employees.

We employ hundreds of people in the industry, how are the members of the association supposed to find new jobs for their employees by September 1?".

Ends
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