Telkom approached the Competition Tribunal to declare the suite of spectrum arrangements between Vodacom and Rain as a merger that should have been notifiable in terms of the Competition Act.
Telkom contends that the merger is notifiable because the multiple agreements between Vodacom and Rain grant Vodacom use and control over the deployment of Rain’s spectrum, including the planning, rollout, maintenance and service of its radio access network.
According to Telkom’s Group Executive for Regulatory Affairs and Government Relations, Dr. Siyabonga Mahlangu, Vodacom’s ability to control Rain’s spectrum entrenches its position as a dominant player in a highly concentrated market
“It is important that the effects of spectrum arrangements on competition are scrutinised,” says Mahlangu. “Particularly, in light of the upcoming spectrum auction which will set the ground for the nature of competition in the mobile market for the foreseeable future” he continues.
Telkom is asking the Competition Tribunal to find that the arrangements constitute a notifiable merger and should be subjected to scrutiny by the competition authorities.
However,
Vodacom denies ‘merger’ with Rain after Telkom accusation
According to businessinsider.co.za, Vodacom is fighting back against Telkom’s accusation that it has effectively merged with another competitor, Rain.
The site further states that a spokesperson of Vodacom said that back in 2018, both the Competition Commission and the Independent Communications Authority of South Africa (Icasa) investigated the agreements between Vodacom and Rain.
Rain’s chief marketing officer Khaya Dlanga also said that the company’s provision of non-exclusive roaming services to Vodacom has previously been scrutinised and approved by the Competition Commission and Icasa.
