Although news that the Independent Communications Authority of SA (ICASA) had approved the proposed buyout of Neotel by Vodacom broke on Monday, the authority remains mum on details around the R7 billion deal.
This comes about a year after Vodacom and Neotel initially asked the regulator for permission for the deal, and follows a protracted deliberation process, including public hearings in January this year.
ICASA's approval is subject to conditions, which the regulator has yet to disclose. These conditions are expected to be revealed when gazetted, either today or next week Friday. The regulator had not responded to requests for clarity by the time of publication.
Cell C fight
Meanwhile, Cell C has vowed to fight a buyout of Tata Communications-owned Neotel by SA's biggest mobile operator Vodacom - a move it believes would give the latter too much power, further polarising what it says is an already uneven playing field.
Cell C said yesterday it was concerned that, four days since the apparent approval of the Vodacom-Neotel transaction, ICASA had still not published its decision nor explained the reasons for this decision.
"With the exception of comments attributed to the outgoing chairman, Stephen Mncube, in a news report, ICASA has remained mum on the approval of this transaction."
News24 on Monday cited Mncube as saying the takeover would be subject to compliance with local ownership laws and adherence to terms regarding the roll-out of broadband infrastructure and services.
Expectations are that spectrum will be another subject of the conditions, as this was the main contention opposing parties had with the deal when they raised concerns earlier this year.
Cell C points out, in addition to ICASA's silence on the significant deal - and the "potential negative impact" it could have on the industry, market structure and economy - there has been no mention of the ownership and transfer of spectrum.
"The only confirmation Cell C has received to date is in the form of a letter from Neotel informing Cell C of ICASA's approval and the 'short public consultation' that is pending on the conditions," says the company.
Cell C has written to the authority seeking formal confirmation and an explanation of its decision. "Cell C will remain steadfast in its opposition to this merger and will use any and all legal avenues to do so."
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