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Telkom has approached the Competition Court to declare the set of spectrum agreements between Vodacom and Rain as a ‘merger’ that should have been reportable under the Competition Law.
Telkom argues that the merger is notifiable because the multiple agreements between Vodacom and Rain give the former use and control over the deployment of Rain’s spectrum, including planning, implementing, maintaining and servicing its radio access network.
According to Telkom Executive for Regulatory Affairs and Government Relations Dr. Siyabonga Mahlangu, Vodacom’s ability to control Rain’s spectrum strengthens its position as a dominant player in a highly concentrated market.
“It is important that the effects of spectrum agreements on competition are analyzed,” Mahlangu said. “Particularly in light of the upcoming spectrum auction that will lay the groundwork for the nature of competition in the mobile market for the foreseeable future,” he said.
Telkom has asked the Competition Tribunal to determine that the agreements constitute a reportable merger and should be subject to scrutiny by the competition authorities.
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