Siyabonga Mahlangu on why Telkom is taking on Vodacom and Rain

Loading player...
Telkom dropped a bombshell on South Africa's telecommunications industry this week when it said it was approaching the Competition Commission to object to Vodacom's roaming agreements with Rain. But why?
In this episode of the TechCentral podcast, Telkom group executive for regulatory affairs and government relations Siyabonga Mahlangu explains why the company has decided to fight an earlier decision by the Competition Commission and Icasa that the spectrum arrangements between Vodacom and Rain should not be considered a merger, and therefore not "notifiable" in terms of the Competition Act.
"The Competition Commission took a narrow interpretation of what's going on. In our view, they focused on the technical integration and they did not look at the economic incentives between the parties... We also believe there was no detailed review of all the ex ante incentives and the mechanics of these arrangements and how they impact on the market structure and the dynamics of competition in the mobile sector," Mahlangu said.
Asked why Telkom is approaching the tribunal now given that the commission and Icasa originally sanctioned the arrangement between Vodacom and Rain back in 2018, he said: "We have been engaging with both authorities without stopping since then... We have been pleading with them to reconsider this..."
Mahlangu said the issue is not whether Vodacom and Rain should be allowed to reach the agreements they have but rather whether they should be required to go through merger control regulations so the situation can be "clarified".
"This is Rain giving control of its spectrum and its radio-access network to a dominant operator. The only way in this country that kind of transaction would be regulated is through the Competition Act," he said.
"The effect of these contractual arrangements is that they have committed Rain's productive capacity to serve Vodacom's needs over an extended period with an impact on the...
15 Oct 2020 English South Africa Technology · Business

Other recent episodes

TCS | Barney Harmse on building Paratus Group – and working with Starlink

Paratus Group executive chairman Barney Harmse joins the TechCentral Show to share the story of the telecommunications group’s rise from small beginnings in Angola and Namibia more than 20 years ago and how it became one of Southern Africa’s biggest ICT infrastructure players. Paratus started life in Angola in 2003,…
3 Sep 56 min

TCS | Maziv goes massive: CEO Dietlof Mare on Vumatel’s big roll-out plans

Maziv, the company that owns Vumatel and Dark Fibre Africa, plans to spend R12-billion over the next five years as its ramps its deployment of fibre infrastructure across South Africa. Poised for a big injection of cash and assets from Vodacom, which is buying a 30% co-controlling stake in the…
26 Aug 52 min

TCS+ | Arctic Wolf on cybersecurity in the age of AI

What does it really take to defend a business in an era of AI-driven attacks? In this episode of TechCentral’s TCS+ ,Clare Loveridge, vice president and GM for Europe, Middle East and Africa (Emea), and Johnny Ellis, senior director of Emea channel sales, both at Arctic Wolf, go beyond the…
25 Aug 33 min

TCS | The story behind Nedbank’s R1.65-billion iKhokha deal

Nedbank announced last week that it was acquiring Durban-based fintech iKhokha in a R1.65-billion deal that could signal the start of further consolidation in the payments industry in South Africa. Nedbank described the deal as a “significant milestone” in its strategy to target small and medium enterprises. iKhokha co-founder and…
22 Aug 26 min