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- Telkom asked the Competition Court to declare the spectrum agreements between Vodacom and Rain a merger.
- You want the competition authorities to examine your relationship.
- But Vodacom and Rain say authorities have already studied and approved their agreements.
- For more articles, go to www.businessinsider.co.za.
Vodacom is fighting Telkom’s claim that it has effectively merged with another competitor, Rain.
On Wednesday, Telkom asked the Competition Tribunal to declare a “merger” of the spectrum agreements between Vodacom and Rain.
Telkom says that the agreements between Vodacom and Rain “give Vodacom the use of and control over the deployment of Rain’s spectrum, including planning, deployment, maintenance and service of its radio access network.” It considers that this constitutes a merger and should be subject to scrutiny by the competition authorities.
But a Vodacom spokesperson said that back in 2018, both the Competition Commission and the South African Independent Communications Authority (Icasa) investigated the deals between Vodacom and Rain.
“The Competition Commission concluded that the 2018 agreements do not constitute a merger in terms of the Competition Law. Icasa found that the 2018 agreements do not violate the Electronic Communications Law. “
The spokesperson said that Icasa is aware that the agreements helped Rain expand as a “wholesale and retail competitor in mobile broadband, which Icasa considered pro-competitive.”
“Vodacom remains confident that the agreements between Vodacom and Rain do not constitute a reportable merger and do not contravene the Competition Law.”
Rain’s marketing director Khaya Dlanga also said that the company’s non-exclusive provision of roaming services to Vodacom has been previously vetted and approved by the Competition Commission and Icasa.
“Rain also competes fiercely in the 4G and 5G data retail markets in South Africa with unlimited innovative and affordable products.
While the details of the agreements between the two companies are not public, competitors have bitterly complained about the deal between Vodacom and Rain, which allegedly includes the smaller operator gaining access to Vodacom’s tower sites to build its infrastructure of network, while Vodacom reaches the piggy bank. back on the valuable radio spectrum assigned to Rain.
At a hearing, Cell C said it estimated that access to Rain’s spectrum would provide Vodacom with a profit of R11.5 billion for this year.
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