Vodacom anticipates feedback from the Independent Communications Authority of SA (ICASA) and the Competition Commission on its proposed buyout of Neotel in the next few weeks.
About a year ago, Vodacom said it was offering R7 billion to buy all of Neotel, which was meant to be SA's second national operator. Vodacom said the deal would help it fast-track its fibre offerings.
The deal will also give it access to much-needed spectrum at the lower end of the frequency range, allowing it to roll out long-term evolution (LTE) faster.
Neotel has licences in three lucrative spectrum bands: 800MHz (used for broadcasting analogue TV), 1 800MHz (which it is using for its LTE pilot), and 3.5GHz (which is being used for WiMax services). Vodacom is refarming the 1 800MHz spectrum it has to offer limited LTE services.
However, the bid has met with opposition, with companies opposed to it, such as MTN, arguing it will give Vodacom a free spectrum gift, allowing it a head start in rolling out faster broadband. All of SA's operators have been pushing for additional access to spectrum so they can roll out high-speed broadband.
In addition to competition concerns, some players, such as the Internet Service Providers' Association, have argued ICASA does not have the power to address the deal because its regulations do not cater for a transfer of control of spectrum and service licences.
This morning, Vodacom CEO Shameel Joosub said a decision was expected from both the competition authorities and ICASA by month-end, which would then allow Vodacom to fast-track its fibre ambitions.
However, the issue still has to go through the Competition Tribunal process, which could take another three or four months to wrap up, depending on how many people and entities object to Vodacom's bid.
Joosub says the merged company will increase competition in the market. He adds it will essentially become the second national operator and, without the deal, SA will battle to meet its targets of ubiquitous broadband by 2020.
He added conditions should be not imposed on the deal, as was the case with Telkom's R2.67 billion offer for Business Connexion, as they would not be warranted.
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