Gogga takes Vodacom to task over user charges

Listed telecoms company Vodacom will appear before the Competition Tribunal on April 26.

The tribunal said yesterday that Gogga Tracking Solutions had brought an interim application for relief against Vodacom.

Gogga will ask the tribunal to order Vodacom to sell it data at 19c a megabyte, the price Vodacom charges the public.

In addition, Gogga wants the tribunal to stop Vodacom from interfering with any of the telecommunications facilities it provided to its customers.

It also wants Vodacom to refrain from demanding payment for past accounts and expenses, which Gogga disputes.

According to Gogga, it bought Internet-access products in bulk exclusively from Vodacom during May 2005 and then structured its own packages, which were sold to end-users.

Gogga submitted that capacity was bought from Vodacom at an initial price of 19c a megabyte.

It maintained that it introduced end-user specials and that its model was a success and performed well.

According to Gogga, Vodacom unilaterally stopped bulk purchases in July 2007, claiming that it was distorting the market and was a misuse of its products.

Gogga said it was also told by Vodacom that Vodacom was making a loss and could no longer supply capacity at that rate.

According to Gogga, the prices were then increased from 19c to 136c a megabyte, and then reduced to 60c a megabyte.

Gogga claimed that the wholesale price for capacity that Vodacom charged was much higher than the retail price to end-users.

According to Gogga, the actions of Vodacom resulted in its business suffering and prejudiced its customers.

Gogga's submission is that Vodacom manipulated the prices and stopped it from doing business because its account was in arrears.

Vodacom has denied all Gogga's allegations.

ýVodacom Group said yesterday that for the year to the end of March its headline earnings a share were expected to be between 20% and 25% higher, compared with the 417c for the previous year.

Headline earnings growth was boosted by a black economic empowerment charge of R1315-billion in the prior year.

Vodacom will release its results on or about May 17.