SATRA ruling dated 12/8/97

Prohibition of call-back
operations in South Africa

(This ruling has since been withdrawn by SATRA)


1. Ruling: FR - 0001

By virtue of the authority vested in SATRA in terms of, inter alia, section 5(2)(b) of the Telecommunications Act, 1996, ("the Act"), SATRA hereby rules that all call-back operations, including their associated support activities, constitute an offence under Section 101(b) of the Act. All call-back operators and customers are hereby duly warned to cease and desist from such unlawful activities.

Penalties of a fine of maximum R 500,000, or 2 years in prison, or both, as contemplated under Section 102 of the Act, will be enforced from 01 September 1997.

2. Definition: "Call-back"

A call originated in South Africa on any South African telecommunications access service provider network, intended for outside South Africa, that, through various means, results in the majority of the call being financially allocatable to other than a South African telecommunications access service provider. Such services are generally based on arbitrage prices relating to accounting rates or collection charges.

3. Basis

3.1 Section 32(1) of the Act prohibits the provision of telecommunications services without a duly issued licence.

3.2 International telecommunication service can only be provided by Telkom SA Ltd in terms of Section 36(3) of the Act and Clause 3 of the Telkom SA Limited PSTN Licence on an exclusive basis for a period. The limited exclusivity permitted to Telkom allows the rollout of telephones to areas and people neglected under the previous dispensation. Such a rollout obligation is a significant contribution to Universal Service, which is in the public interest and a major objective of the Act.

3.3 Call-back operation results in calls that originate in South Africa being transformed into calls that primarily originate outside South Africa. SATRA has determined such operations to be in contravention of the Act and of the Telkom Licence.

End
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