Competition Commission eyes Vodacom-Neotel deal

The transaction, proposed more than a year ago, would allow Vodacom to provide fixed line services to homes and businesses, making the company a strong competitor to Telkom or provide, in the worlds of Vodacom chief executive Shameel Joosub, “a worthwhile alternative to Telkom”. Telkom chief executive Sipho Maseko was reported as saying last week that the deal would make for formidable competition in the market.

 

The transaction is, however, opposed by rival mobile operators MTN and Cell C. They argue that the merger would lock down the market in South Africa for Vodacom at the expense of competition, thereby harming consumers by driving prices up. -ANA

 

(File Photo: Gallo Images)