Vodacom-Neotel deal is dangerous: Cell C
Cell C is preparing to oppose the acquisition of Neotel by Vodacom at an Icasa hearing, saying that the deal could be “fatal” for competition in SA telecoms.
This is according to a report by Bloomberg, quoting a statement by Cell C to the Independant Communications Authority of South Africa (Icasa).
Cell C is set to oppose the R7 billion deal in front of regulators next week, Bloomberg reported, saying the deal should be blocked because of the detrimental and fatal impact it would have on competition.
A successful deal would “unfairly” strengthen Vodacom’s ability to compete, should the group gain control of Neotel’s spectrum, Cell C said.
Cell C added that such spectrum should be reallocated to other companies.
MTN is also opposing the planned deal between Vodacom and Neotel, and questioned the transfer of spectrum between the two companies.
In May 2014 Cell C CEO Jose dos Santos said the company will oppose any deal that is likely to lessen competition in the market.
Cell C is also opposing the planned network-sharing deal between MTN and Telkom. “As Cell C understands the proposed transaction, we do not agree with it,” said dos Santos.
Icasa will hold a hearing on the deal on January 15 and 16.
More on Vodacom and Neotel
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