The decision follows concerns over monopolistic control and potential impacts on affordable broadband access for low-income communities.The Competition Tribunal today prohibited a proposed multi-billion rand merger between Vodacom, Dark Fibre Africa and Vumatel to create what would have been South Africa’s largest fibre operator.
Concerns were raised that Vodacom will have main control over the merged company, even though it will only own between 30% and 40%, because it will be providing funding for investment. During the hearing, the Tribunal heard evidence from various factual witnesses including from each of the merging parties, Frogfoot Networks, Telkom Consumer and Small Business and Mobile Networks of Telkom Consumer and Small Business, divisions of Telkom, MTN and Rain. At the Tribunal’s request, Hero Telecoms also provided factual testimony.
Towards the end of last month, in closing arguments on behalf of the Commission in Competition Tribunal hearings, Advocate Daniel Berger, SC, said the merger would be to the detriment of poor people, particularly impeding the Constitutional right to education.
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