Friday, July 16, 2010
Telkom SA to End9-Year Case With USD 80 Million Settlement
The 2001 warngle involves the supply and installation of a customer management system, which Telkom insisted did not match up to specifications – claiming breach of contract.
In 2000 Telkom terminated its agreement with Telcordia, alleging that the US company had not provided the product to the agreed specifications.
In 2001 Telcordia set in motion an arbitration process with the International Chamber of Commerce. In 2005 the Supreme Court of Appeal (SCA) ruled in favour of Telcordia, but the matter was subsequently taken to further arbitration.
A Telkom spokesman commented: ‘This settlement follows on from lengthy arbitration proceedings, during the course of which two partial awards were made by the arbitrator’. Previous indications suggested that the telco could have been liable for a fine of as much as USD1.5 billion.