Business

Telco takes Potraz to court over licence fees

Staff Reporter

Internet access provider Telco and Potraz are embroiled in a license dispute that is threatening to spill over into the courts after Telco dragged the licencing authority to the High Court. The company is seeking an order declaring that the fees sought by POTRAZ are unreasonable under the Postal andTelecomunications Regulations. A second order being sought by the company is that the first responded publishes the licenses of all the other internet access providers.

This development comes at a time when Potraz has announced that revenue in the telecoms sector has declined by 11 % to $237, 7 million. The slump in the economy has affected consumption patterns in the economy.

Telco is challenging the decision by POTRAZ to cancel their license after the internet provider failed to raise the $5, 5 million fees stipulated by law. Telco has proposed a payment plan to clear the license arrears which has been rejected by Potraz.

The internet access provider argues that the $5.5 million fees stipulated by the law are unreasonable and unsustainable in the prevailing economic conditions.

Meanwhile Potraz have filed a notice to contest the action arguing that the applicant (Telco) , have not yet  exhausted the internal remedies to seek redress as provided for by the law.

The telecoms sector has been hit by the current economic slump affecting the entire country making operations of telecoms company more difficult. Hundreds of people are expected to lose their jobs if the internet access providers lose the case.