Telkom and MTN will not proceed with their deal where MTN intended to acquire RAN assets of Telkom, in order to avoid a \u201cprotracted Competition Tribunal hearing\u201d, said Telkom CEO Sipho Maseko.<\/p>\n
This followed a statement from the Competition Commission that it did not recommend the approval of the deal between the two companies.<\/p>\n
Telkom and MTN South Africa signed a heads of agreement in 2014 to extend their existing roaming agreement to include bilateral roaming and outsourcing of the operation of Telkom\u2019s radio access network.<\/p>\n
The Commission said the transaction between MTN and Telkom would impact the structure of the mobile market in South Africa, and would \u201cprevent or lessen\u201d competition in the mobile services market.<\/p>\n
The terms of the proposed deal included:<\/p>\n
\u201cMTN notes with disappointment the decision of the Competition Commission,\u201d said Graham de Vries, executive for corporate services at MTN.<\/p>\n
\u201cAs a result of an agreement between MTN and Telkom, MTN cannot pursue this transaction any further. MTN will continue to explore other ways of creating value through efficient network consolidation,\u201d he said.<\/p>\n
Maseko said Telkom would \u201ccontinue to explore all avenues to further strengthen [its] mobile business\u201d.<\/p>\n
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