Vodacom CEO Shameel Joosub said on Monday the telecommunications operator’s proposed R7bn acquisition of Neotel should have no conditions attached to it as it is “stepping up to the plate” to be South Africa’s second national fixed-line network operator (SNO), competing with Telkom.
Joosub also expressed frustration, that a year after the proposed deal was announced, it still had not received regulatory approval from either communications regulator Icasa or the Competition Commission.
“We are hopeful about getting an answer soon,” said Joosub. “The delay in receiving approval … to be frank is quite disappointing. Every day … is a day lost in connecting South Africa.”
He said Vodacom expects a decision from both regulators by the end of May. The decision by a Competition Tribunal, which must consider the commission’s recommendations, will “probably still take another couple of months”.
“We don’t think there should be any obligations on the deal,” he added. “There are a number of positives that flow from the deal. We are stepping up to the plate to be the SNO. We want to capitalise Neotel properly.”
He said that with Neotel, Vodacom could do a lot to improve South Africa’s fixed-line penetration rate of only 7% and help meet government’s goals of achieving universal broadband.
“Without Neotel in proper hands, we are at risk of those goals not being achieved,” Joosub said.
He said the successful acquisition of Neotel is also important in light of the Competition Commission’s decision last week to approve (with conditions) Telkom’s R2,7bn acquisition of IT group Business Connexion. — © 2015 NewsCentral Media
