The Wireless Access Providers' Association (WAPA) has come out in opposition to Vodacom's proposed buyout of Neotel, arguing it will stifle competition and lead to job cuts.
In addition, WAPA believes the deal will "do little to reduce the digital divide, which it believes should be the country's top priority with regard to broadband".
Vodacom this week confirmed the rumours swirling around the marketplace - that it was looking to gain control of SA's second national operator - were true. Although a price has yet to be disclosed, ITWeb understands it will be more than the R5 billion that has been mentioned.
SA's largest cellphone company wants to bundle Neotel together with Vodacom Business to create an entity that will compete more effectively, and use spectrum better.
However, the association's chairman, Christopher Geerdts, says: "WAPA's concern is that Vodacom's influence will... severely limit open wholesale access and set back, rather than increase, competition and consumer choice."
The body, established in 2006, is a non-profit organisation that acts as a collective voice for independent wireless operators in SA. Its primary objective is to ensure the sustainability of the wireless access services market.
Neutral strategy
In a statement, WAPA says its membership is growing at more than 25% a year as smaller operators "seize the gap created in the broadband market, particularly with respect to last-mile access".
"The growth in smaller operators is good for the customer and good for the country," says Geerdts. WAPA says this increases competition, creates jobs and drives rural broadband penetration.
"Larger operators tend to cut jobs and cherry-pick customers in the most lucrative suburbs and business parks," says the association.
It believes SA must build up a complementary strategy, where large and small players coexist and play to their strengths. "In addition, operators with a national backbone need to provide truly neutral and open wholesale services so as to open the market to competition."
"WAPA and many of its members enjoy an excellent relationship with Neotel, which has proven that strong, wholesale providers with a commitment to rural rollout can complement smaller operators with existing presence and experience in those areas."
Share
