Icasa says yes to Vodacom, Neotel deal - TechCentral

Icasa says yes to Vodacom, Neotel deal

Will the deal happen?

Will the deal happen?

Communications regulator Icasa has decided to approve Vodacom’s R7bn acquisition of Neotel, but has attached conditions to the deal.

That’s the word from Icasa spokesman Paseka Maleka, who declined on Monday to say what the conditions are that the authority intends attaching to the deal.

“We are pleased to receive approval for the transaction. We will work with Icasa to finalise the conditions of the approval,” Vodacom spokesman Richard Boorman told TechCentral in an e-mail.

“We are encouraged that the acquisition is moving and brings us closer to providing fixed connectivity to homes and businesses,” he said.

The Competition Commission, which could still scupper the deal, is yet to decide whether to green-light the acquisition. If it does, however, it is also likely to attach a range of conditions to the transaction.

Bloomberg reported that Icasa has attached two conditions to the acquisition. “The takeover will be subject to compliance with a local ownership law and adherence to terms regarding the roll-out of broadband infrastructure and services,” the news wire service quoted Icasa chairman Stephen Mncube as saying.

Maleka told TechCentral that Icasa intends holding a press conference on Wednesday at which it will explain the conditions in more detail.

Two Vodacom competitors, MTN and Cell C, had filed objections at Icasa, warning that the deal could have a negative impact on competition in South Africa’s telecommunications industry if it is allowed to go ahead.  — © 2015 NewsCentral Media

9 Comments

  1. CLAPPING HANDS ALL THE WAY, CONGRATS VODACOM, FINALLY SOME REAL COMPETITION FOR TELKOM!

  2. Johan Slabbert on

    MTN and CellC in real trouble (not just because of this). In the Mall MTN shop is locked (with a chain, no phones on display). CellC stores open but very few customers. Vodacom stores doing brisk business. MTN website a nightmare to navigate. CellC a lot better, but not as easy as finding deals on Vodacom’s website.

  3. Always look on the bright side as the Monty Python show says…At least there will be no shortage of staff, seeing as there are soon to be 4000+ eager ex-Telkom entrepreneur techies (without bakkies) just waiting to climb in here and put their previous employer outa biz.

  4. Cell C, I do not like. Increasingly their services and communications are becoming irritating and unnecessarily arrogant (like the best network in the country drivvel).

    MTN generates a larger proportion of its business external to the Republic. In addition, it has a larger presence (so I think) in Corporate and Business consumers of the Republic.

    Telkom is likely to be the operator who should/would be most concerned by this move. Cell C may shout their concern, but what haven’t really shown that they will ever be a real long term contender. Their debt will ultimately keep them in check.

  5. Greg Mahlknecht on

    I wouldn’t get too excited about this – Neotel was supposed to be competition from day 1. I’m looking at FTTH prices from the suppliers and Vodacom’s offerings are REALLY expensive on the consumer side; Neotel have lagged the market badly are significantly more expensive than the other players in the enterprise space.

    I share your enthusiasm and hope that you’re right, but both companies have a history of being expensive, I don’t see two wrongs making a right 🙁

  6. Ofentse Letsholo on

    While this is good news for both companies, for the industry we will have to see as this seems to benefit them only and we know how expensive these two companies have been.

  7. Vodacom’s target market will be corporate as is the case with their mobile market, but any form of competition against Telkom is welcome from all corners of the spectrum.