The Black IT Forum (BITF) has come out in support of Vodacom buying Neotel for R7 billion - a deal that is taking much longer than expected to reach conclusion.
Vodacom's bid for Neotel has seen fierce opposition from certain players who feel, if approved, Vodacom would have too much muscle.
The BITF wants to see Vodacom given the green light to acquire Neotel - a move it says will benefit the economy, which has suffered due to a "policy vacuum" around the allocation of spectrum.
BITF president Mdu Mkhonza says spectrum is a national asset that needs to be managed carefully, "but the delay in terms of the decision-making as to how it will be allocated has affected economic growth, and social priorities have been put on the back burner".
Mkhonza says the fact that Neotel was introduced as a competitor in the fixed-line market - and failed - is evidence that "market forces need realignment". He says the Vodacom-Neotel deal is in line with the international market, which has seen a consolidation of smaller players for the greater good.
"Of course we also want to see competition in the industry." Mkhonza says. Through engagement with MTN and Cell C - the latter having been very vocal in its opposition to the deal - BITF has established concerns are not around the acquisition itself, but around the fact that Vodacom would be getting Neotel's spectrum "through the back door," he adds.
No direction
The issue, he says, is that the policy directive around spectrum allocation says nothing about such an acquisition. "So we want to see Vodacom given the go-ahead to buy Neotel, but at the same time, we want to see the introduction of technology that will free up the congested networks."
Another condition the BITF is rooting for is that there is a moratorium placed on Neotel retrenchments. "And we want to see Vodacom going out and ensuring that rural areas become part of the digital economy."
Mkhonza says the industry should not be held ransom because of a lack of decision-making and policy directive on the part of government. "We say let the deal go ahead, but let's put a clause in place to allow Vodacom to operate [this way] for five years, while the relevant players, the regulator and government finalise policy around how spectrum allocation will be dealt with."
He says government and ICASA need assistance in this regard and the BITF wants to bring key stakeholders on board to deliberate and drive urgency in terms of their decision-making.
The BITF is awaiting a date for its representation on this issue to ICASA, after which it says it will tackle the Department of Telecommunications and Postal Services and the Department of Communication.
Vodacom's plea
In January, when ICASA held hearings on the proposed deal, which has been positioned as one of the industry's biggest, Vodacom CEO Shameel Joosub said the operator was " severely constrained" by a lack of spectrum.
He said, given the go-ahead, the acquisition would play a major part in stimulating investment in in fibre and mobile data networks, helping Vodacom to achieve government's national broadband targets.
Joosub noted SA sits on 7% fixed broadband household penetration, versus around 75% in developed economies. "We have a lot of catching-up to do." He said, although Vodacom had been forced to work around spectrum constraints, the operator had reached the limits of what is possible.
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