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Wrinkle in Vodacom, Neotel deal

Staff Writer
By Staff Writer
Johannesburg, 18 Mar 2015
Vodacom will have to wait a bit longer to hear if it can buy Neotel.
Vodacom will have to wait a bit longer to hear if it can buy Neotel.

The Independent Communications Authority of SA (ICASA) received more submissions before it could rule on Vodacom's R7 billion bid for Neotel.

ICASA was meant to make a decision this month as to whether the deal can proceed. However, in a statement, the regulator notes it has received further submissions from some interested stakeholders, as well as Neotel and Vodacom.

"In the interests of fairness, the opportunity to submit additional comments had to be extended to all interested stakeholders, followed by Neotel and Vodacom having the right of reply to all comments received."

Earlier this year, ICASA held public hearings into the deal, with several parties opposed to Vodacom's buyout of Neotel, some arguing it would give Vodacom an upper hand in the mobile arena as Vodacom would have access to valuable spectrum as well as 16 000km of fibre.

ICASA says it needs to "consider all relevant information in the process of reaching its decision". Last week, it issued invitations for a second round of submissions from interested parties, which are due tomorrow.

Vodacom previously expressed confidence in the deal being done and dusted by the end of March.

ICASA says it is analysing all submissions made to it, and will make a decision in due course, which will be followed by an announcement.

Even if ICASA gives the deal the green light, the competition authorities still need to approve it.

There have been concerns ICASA does not have the procedures in place to deal with what is effectively a transfer of spectrum ownership. When it comes to Vodacom's current buyout application, there is law that outlines the procedure for a transfer of ownership - but not for a transfer of control - which is what some have argued the bid is tantamount to.