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Experts agree Cell C-MTN deal is good for industry

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Though some have seen it as a merger of the two operators, no business control has been ceded,

Though some have seen the roaming agreement as a merger of the two operators, no business control has been cededThe conclusion of the long-negotiated, expanded roaming deal between Cell C and MTN has brought into question what the agreement means for competition in a saturated mobile industry, as some have seen it as a merger of the two operators.

said for the conclusion of the roaming agreement to constitute a merger for competition purposes, one party would need to acquire control over the business or productive assets of the other. The deal makes no provisions for sharing or selling of spectrum. Cell C retains all its own spectrum and each party will use its own frequencies. The two networks’ infrastructure will remain independent but both parties will have the right to roam on the other’s network.

The Competition Commission raised concerns with that transaction, which was ultimately abandoned by MTN and Telkom, Tzarevski said. The roaming arrangement between Cell C and MTN does not appear to involve an acquisition of control but merely the provision of roaming services, he said.

 

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