MTN is reportedly beginning its own court battle to stop the pending Vodacom-Neotel merger. Fellow telecoms operators Cell C and Telkom already have separate court bids under way.
According to Business Day, MTN has filed papers with the High Court in Pretoria to try stop the transfer of licences from Neotel to Vodacom by the Independent Communications Authority of SA (ICASA).
The R7 billion buyout of Neotel by Vodacom has been almost 18 months in the making but has met with much opposition from rival telco operators, which see the deal causing an un-competitive ripple effect, especially in terms of spectrum allocation.
MTN did not respond as to the specifics of the court action by the time of publication but ICASA spokesperson Paseka Maleka told ITWeb the regulator was "aware of the court papers and heads of arguments being lodged". He says the matter is being opposed by ICASA but there is currently no confirmed date for the matter to be heard.
ICASA set out its conditions to approve the merger in July. The regulator said Vodacom and Neotel would have to focus future broadband infrastructure roll-outs on underserviced areas as well as fulfil a 30% black economic empowerment obligation, were it to go ahead.
Around the same time, the Competition Commission recommended the Competition Tribunal approve Vodacom's proposal to buy 100% of Neotel, with certain conditions.
The primary condition was around Neotel's spectrum, one of the most valuable assets to Vodacom and its rivals' biggest concern around the deal. The commission recommended Vodacom not be allowed to use Neotel's spectrum, either directly or indirectly, for a period of two years from the approval date or 31 December 2017, whichever comes first.
At the time, the Competition Commission said the two-year deferment period was intended to give an opportunity to policy-makers to address the spectrum challenges in the industry. However, rivals do not think the condition does enough to mitigate Vodacom's domination of the market.
Earlier this month, Cell C also filed court papers against ICASA in an attempt to hold the deal up, following similar action by Telkom in July.
When filing its papers, Telkom said it believed "the regulator has not adequately considered certain considerations when granting regulatory approval for the transaction".
"Telkom is of the view that the regulator's approval of the proposed transaction was premature. A transfer of control of spectrum licences in the circumstances will be contrary to the values of accountability, responsiveness and openness which are fundamental values of our constitution."
The Competition Tribunal will soon hold public hearings on the merger matter before ruling on a decision.
Share