MTN wades into Vodacom Neotel deal
With a merger deal between mobile operator Vodacom, and fixed line business, Neotel believed to be imminent, MTN has questioned the transferability of spectrum between the two companies.
Neotel and Vodacom confirmed at the end of September that they had entered into exclusive discussions regarding a potential acquisition of 100% of the shares of Neotel by Vodacom SA.
Neotel has access to spectrum which Vodacom needs for its Long Term Evolution network.
“Its not acceptable as far as we understand,” said Sifiso Dabengwa, group chief executive and president of MTN, speaking at the company’s results presentation earlier in the week.
“What is the rule or law that must be followed,” Dabengwa asked, adding: “For us to get in the way to block it is not the right way to do it. “
He said, however, that there should be a law around the transfer of spectrum.
MTN South Africa CEO, Zunaid Bulbulia said that, should the transferability of spectrum become “kosher” in SA, MTN would be able to move on that change.
Sébastien Crozier, CEO of Orange Horizons, the local subsidiary of the global telco Orange, has told BusinessTech previously that should Vodacom take control of Neotel, the latter’s radio frequency spectrum should be given back to government.
“Is convergence their (Vodacom) real interest in South Africa, or are they more interested in frequency?” Crozier asked.
The chief executive said that the authority should not allow Neotel to keep the frequency under a different shareholder, namely Vodacom.
“The frequency is not supposed to be resold,” Crozier said. “Frequency belongs to the state, and not private players.”
More on MTN, Vodacom and Neotel
Vodacom-Neotel details “weeks away”
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