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Comments open for Vodacom, Neotel

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 23 Sept 2014
Control of Neotel's licences will pass to Vodacom if its R7 billion bid goes through.
Control of Neotel's licences will pass to Vodacom if its R7 billion bid goes through.

The Independent Communications of Authority of SA (ICASA) has noted it has received an application relating to Vodacom's proposed R7 billion buyout of Neotel.

The regulator's gazetted notice indicates it has received an application for transfer of control of the service licences, although Neotel is set to keep owning its licences.

The gazette, however, makes no mention of a request for transfer of control of the spectrum.

As Vodacom is buying all of Neotel - even though it will remain a standalone entity - control of its licences will be passed from Neotel to Vodacom.

Interested parties have been given 21 days in which to comment, and can request to make oral presentations on their viewpoints.

Telecoms lawyer Lisa Thornton has said prior approval to transfer a licence, or control over it, is needed, adding before the Electronic Communications Act was changed, only the transfer of a licence required prior approval, and not the transfer of control. This applies to both service licences and spectrum licences.

Vodacom had been in talks around buying Neotel for several months when it announced in May it would pay R7 billion in a bid to boost its fibre network and use its radio frequency more effectively.

Telkom's R2.67 billion purchase of Business Connexion (BCX) - also announced in May - will require moving licences.

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