The Competition Commission's annual report, released in early October, delivers a scathing indictment on the state of the local telecommunications sector, and the lack of competition therein.

According to the report, the local telecoms market structure lends itself to anti-competitive practices. "Telkom belongs to the category of firms that are formerly state-owned and is super-dominant, even with the entry of Neotel. Neotel has already stated publicly that it will not be competing with Telkom on pricing and its entry simply creates a duopoly."