Abstract
A regulation is the “employment of legal instruments for the implementation of social-economic policy objectives” (Govender 2008: 10). In this way, according to OECD (2001), regulation “refers to the various instruments (both formal legal and such informal tools as “guidance”) used by government to control some aspects of the behavior of private economic actor. Regulation can also include rules issued by non-governmental bodies to which governments may have delegated regulatory powers. All regulations are supported by explicit threat and punishment for non-compliance”. In this respect, it is interesting to study the nature and extent of economic regulation with reference to the fixed-line telecommunications sector in South Africa and more especially Telkom.
Firstly we need to understand what regulation means, what monopoly is and who implement regulations. Regulation – is a control which is imposed to a company which dominates the market with the intention of promoting competition not monopoly and promoting healthy business as defined by Selznick.
