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

      Mobile money lifts Africa savings to decade high

      17 July 2025

      South Africa loosens media ownership rules – but keeps one hand on the remote

      16 July 2025

      Eskom targets 32GW green energy shift by 2040

      16 July 2025

      MTN Group appoints new chief enterprise officer

      16 July 2025

      Kruger Park’s white rhinos get a hi-tech lifeline

      16 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 » Telkom gets green light to buy BCX

    Telkom gets green light to buy BCX

    By Duncan McLeod14 May 2015
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    green-robot-640

    It’s a case of second time lucky for Telkom and Business Connexion (BCX). The Competition Commission announced on Thursday that it has recommended to the Competition Tribunal that the telecommunications operator’s R2,7bn deal to acquire the IT services group be approved – with conditions.

    It’s the second time in the past decade that Telkom has attempted to buy BCX. The previous attempt was thwarted by the competition authorities, which were concerned about the impact that a merger would have on competition in the information and communications technology sector.

    In a statement on Thursday, the Competition Commission said it had found that Telkom, as the largest provider of wholesale leased lines to downstream customers, has the ability to foreclose its downstream rivals from access to these wholesale leased lines which are essential inputs for the provision of downstream services including managed network services, value-added network services, hosting and IT services.

    “The commission also found that the merger will result in the merged entity having the ability and incentives to engage in bundling strategies that may result in anticompetitive effects,” it said.

    “On public interest issues, the commission found that the merger will result in employment losses of up to 60 employees over a three-year period.”

    To address its concerns, the commission has recommended to the tribunal that certain behavioural and employment conditions be imposed.

    “Among the behavioural conditions, is that Telkom’s application and implementation of the transfer pricing programme should explicitly include fibre access, and remain in force for the duration of the condition period,” it said. “Consequently, the tenure of the transfer pricing programme will be extended from 18 July 2018 to 31 December 2020.”

    In relation to competition concerns arising from foreclosure of downstream rivals through bundling strategies, the commission said Telkom will among other things:

    • Ensure that the prices for wholesale leased lines are based on actual lines utilised and priced at the non-discriminatory transfer price for common components.
    • Ensure that the prices for the other services and/or components included in the bundle are based on actual costs incurred.
    • Ensure that it does not set prices for its bundled offerings using wholesale leased lines at levels which are less than the sum of the costs of components in the bundle. “In other words,” it said, “the principle is that the prices for wholesale leased lines included in the bundle must exceed the cost applied in internal pricing and the revenues generated from the bundled offering must exceed the costs associated with providing the bundle plus a positive margin.”
    • Ensure that when providing any bundled offering which includes wholesale leased lines, the price for each individual service included in the bundle is clearly reflected in the overall price for the bundle.

    To address its employment concerns, the commission has recommended that a condition be imposed limiting the number of employment losses arising as a result of the merger to a maximum of 60 employees.

    “Such employment losses shall be limited to a maximum of 20 employees per year in each of the three years.”

    The commission did not say when it expects to make a decision on Vodacom’s proposed R7bn acquisition of Neotel.  — © 2015 NewsCentral Media



    BCX Business Connexion Competition Commission competition tribunal Telkom
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleNo plans to privatise Eskom
    Next Article How an SA retailer swatted its Eskom bill

    Related Posts

    South Africa’s telcos battle to monetise 5G as 4G suffices for most

    15 July 2025

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

    8 July 2025

    Huawei South Africa Connect 2025 showcases pathways to industrial transformation

    6 July 2025
    Company News

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

    16 July 2025

    Mental wellness at scale: how Mac fuels October Health’s mission

    15 July 2025

    Banking on LEO: Q-KON transforms financial services connectivity

    14 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.