Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Vodacom fibre play pushes Maziv valuation above Telkom’s

      20 July 2025

      Crypto industry shoots for mainstream adoption

      20 July 2025

      Vodacom’s Maziv deal gets makeover ahead of crucial hearing

      18 July 2025

      Cut electricity prices for data centres: Andile Ngcaba

      18 July 2025

      Takealot taps Mr D to deliver toys, pet food and future growth

      18 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Samsung’s bet on folding phones faces major test

      10 July 2025

      Bitcoin pushes higher into record territory

      10 July 2025

      OpenAI to launch web browser in direct challenge to Google Chrome

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025
    • In-depth

      The 1940s visionary who imagined the Information Age

      14 July 2025

      MultiChoice is working on a wholesale overhaul of DStv

      10 July 2025

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025
    • TCS

      TCS+ | Samsung unveils significant new safety feature for Galaxy A-series phones

      16 July 2025

      TCS+ | MVNX on the opportunities in South Africa’s booming MVNO market

      11 July 2025

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025
    • Opinion

      A smarter approach to digital transformation in ICT distribution

      15 July 2025

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » CIVH’s Vumatel acquisition approved, with conditions

    CIVH’s Vumatel acquisition approved, with conditions

    By Duncan McLeod30 April 2019
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    The Competition Tribunal has approved the acquisition by Remgro’s Community Investment Ventures Holdings (CIVH) of Vumatel, but has attached long-term conditions to the sale.

    In approving the deal, which will give CIVH sole control of Vumatel, the tribunal said the merged entity must continue to use the open-access model for service provision for certain of its services. The new entity must also improve its transparency mechanisms and agree to an obligation not to discriminate against its customers who compete with Vumatel.

    “The conditions also include two public-interest obligations, one of which is confidential due to business sensitivity,” the tribunal said in a statement on Monday. “The other provides for the merging parties to provide free uncapped fibre services to public and private schools that its networks bypass.”

    The conditions also include two public-interest obligations, one of which is confidential due to business sensitivity

    The conditions apply for a period of 10 years from the date of the implementation of the merger.

    Vumatel has quickly emerged as a significant player in the home fibre broadband market, leading a challenge to market leader Telkom’s Openserve in the provision of fixed Internet infrastructure.

    The tribunal noted that CIVH already controls Dark Fibre Africa (DFA), which provides fibre backhaul to Vumatel and other service providers. It also control SA Digital Villages, another home fibre provider.

    CIVH is jointly owned by Industrial Electronic Investment (IEI) and New GX. IEI is controlled by Venfin, which is, in turn, controlled by Remgro.

    ‘Horizontal competition concerns’

    “The Competition Commission, which assesses large mergers before referring them to the tribunal for a decision, evaluated the merger and raised vertical competition concerns in the proposed transaction because DFA is considered to be the largest backhaul provider, assessed on a regional basis,” it said.

    “The commission had also raised horizontal competition concerns as it had found that Remgro indirectly controls Octotel, a Cape Town based competitor to Vumatel.”

    Octotel opposed the sale of Vumatel to CIVH, arguing that it also relies on DFA to provide it with backhaul services in the Western Cape. Octotel had raised concerns in relation to the proposed merger and was permitted to make submissions to the tribunal as an “intervenor”. Octotel urged the tribunal to prohibit the merger, arguing that the proposed conditions were insufficient to prevent CIVH, via DFA, favouring Vumatel at the expense of rivals.  — © 2019 NewsCentral Media



    CIVH Competition Commission competition tribunal Dark Fibre Africa DFA Octotel Remgro top Vumatel
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleVodafone is said to have found hidden ‘backdoors’ in Huawei gear
    Next Article Government pays Icasa after threat of court action

    Related Posts

    Vodacom fibre play pushes Maziv valuation above Telkom’s

    20 July 2025

    Vodacom’s Maziv deal gets makeover ahead of crucial hearing

    18 July 2025

    Vodacom, Maziv deal now looks likely after CompCom U-turn

    8 July 2025
    Company News

    Vertiv to acquire custom rack solutions manufacturer

    18 July 2025

    SA businesses embrace gen AI – but strategy and skills are lagging

    17 July 2025

    Ransomware in South Africa: the human factor behind the growing crisis

    16 July 2025
    Opinion

    A smarter approach to digital transformation in ICT distribution

    15 July 2025

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.