Vodacom will have wrapped up its discussions with possible new shareholders for iBurst by next quarter.
Speaking during a conference call on its maiden final results set since it listed, CEO Pieter Uys explained that nothing has yet been finalised in terms of its possible divestment from iBurst. “We are still in discussions with potential buyers and we are planning to complete it by next quarter,” he added.
Vodacom wants to get rid of its shareholding in iBurst to be able to bid for the much-coveted scarce spectrum in the 2.6GHz and 3.5GHz bands. Many telcos are looking to gain access to those frequencies, to develop WiMax or LTE networks.
However, the current regulatory framework in draft format says only operators without access to those bands can apply for the spectrum. iBurst has about 15MHz in the band, and Vodacom's investment in the company would exclude it from applying.
Earlier this month, iBurst CEO Jannie van Zyl confirmed the marriage between Vodacom and iBurst is becoming more difficult for both companies to maintain.
He says iBurst has been equally handicapped by its relationship with Vodacom. “At the moment, it is a case of competition. We resell each other's products, but we are also competing,” adds Van Zyl. He says it has become more difficult to sit at a board level and discuss strategy.
Despite the possible divestment, iBurst is not concerned, and Van Zyl says the company will now be given the opportunity to really compete.
Vodacom and iBurst were joined when the mobile giant's then CEO, Alan Knott-Craig, and his son, Alan Knott-Craig Junior, then head of iBurst, signed a co-operative deal. Knott-Craig senior was also iBurst's chairman at the time.
Vodacom currently holds a 24.9% shareholding in iBurst.
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