S.Africa's Telkom agrees to pay $49 mln fine

JOHANNESBURG, April 16 Tue Apr 16, 2013 12:26pm EDT

JOHANNESBURG, April 16 (Reuters) - South African fixed line operator Telkom said on Tuesday it had agreed to pay a 449 million rand ($49 million) fine handed down by regulators last year for uncompetitive behaviour.

Under the terms of a settlement with the anti-trust regulator, Telkom said it would pay half the fine in the next six months and the other half in the year after that.

The Competition Tribunal imposed the fine in August after determining Telkom used its dominant position to block competition from other network service providers.

Telkom had initially launched an appeal against the fine, which was well below the 3.5 billion rand originally sought by the watchdog.

The company reported an 80 percent drop in first-half profit in November after it set aside funds to pay the penalty. ($1 = 9.1639 South African rand) (Reporting by Ed Cropley; Editing by Jon Herskovitz)

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