Fibre boss warns Vodacom control over DFA would break South Africa’s fibre industry

Frogfoot founder and former CEO Abraham van der Merwe has told the Competition Tribunal that he is deeply concerned about what will happen if Vodacom buys a stake in Maziv.

“DFA exists today because there was a massive opportunity to connect the base stations of the mobile operators. The largest one of those is Vodacom,” said Van der Merwe. Van der Merwe said one of their worries was that DFA has increasingly been launching services that compete against their own customers.

He explained that Vodacom could duplicate DFA’s fibre-to-the-tower network or contract a player like Frogfoot to “overbuild” them if needed. However, Van der Merwe contended that the ability to disrupt MTN’s business model by having DFA substantially hike prices could be worth more to Vodacom than the short-term impact on its profits.

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