Staff Writer 14 October 2020
Telkom approached the Competition Tribunal today to declare the suite of spectrum arrangements between Vodacom and Rain as a merger.
According to Telkom, this merger 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.
This includes the planning, rollout, maintenance, and service of its Rain’s radio access network.
According to Telkom Group Executive for Regulatory Affairs and Government Relations 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,” said 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.