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+ | Kinetic Skunk: fintechs risk cloud bill shock without proper planning

Fintechs choose cloud technologies in the hopes that the efficiency and scalability of cloud computing will give them a competitive advantage. But cloud adoption is no silver bullet. If done incorrectly, a migration to the cloud can cause costs to balloon instead of decreasing them, leading to frustration and even…
21 Aug 37 min

TCS | Alan Knott-Craig unveils Fibertime’s big bet on township fibre

Alan Knott-Craig’s new fibre internet business has been flying below the radar for some time now, but the serial telecommunications entrepreneur has finally unpacked his plans for the business. Speaking to the TechCentral Show this week, Knott-Craig – who has led a range of well-known tech businesses, including Mxit, World…
15 Aug 22 min

TCS | Pick n Pay’s Enrico Ferigolli on building asap! and taking on Shoprite

Although Shoprite Group stole a march on many of South Africa’s retailers in on-demand online grocery delivery during the Covid-19 lockdowns, Pick n Pay has a clear plan to make up lost ground and compete aggressively for market share. Enrico Ferigolli, who co-founded the liquor delivery app Bottles – which…
14 Aug 49 min

TCS+ | Cassava’s Adil El Youssefi on data centre growth in Africa

In this episode of TCS+, Adil El Youssefi, newly appointed CEO of the colocation business at Cassava Technologies and CEO of Africa Data Centres, chats about the challenges and opportunities in sub-Saharan Africa. El Youssefi delves into: • His background prior to being appointed into the role and how it…
13 Aug 30 min

Watts & Wheels Ep 3: 'We drive the new Dongfeng Box'

The Dongfeng Box electric city runabout has landed in South Africa, and Watts & Wheels has taken the vehicle – one of the cheapest electric cars currently on sale in the country – for a test drive. One of China’s biggest and oldest motoring manufacturers, the state-owned Dongfeng Motor Corporation…
11 Aug 46 min