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South Africa: MTN spells out opposition to rival mobile merger

By  |  November 17, 2014

South Africa-based wireless operator MTN has outlined exactly why it opposes a proposed merger between two of its rivals.

The company has issued objections to the planned acquisition of Neotel by Vodacom to the nation’s Competition Commission and the Independent Communications Authority of SA, say reports.

MTN argues that the spectrum transfer that would take place from Neotel to Vodacom is illegal under South African competition rules because Neotel’s spectrum is a public asset.

Further, MTN says, the takeover would reduce competition by removing an industry player while boosting already-dominant Vodacom’s assets.

Vodacom declined to respond to MTN’s allegations but noted earlier this year that the merger is part of the market’s response to the nation’s spectrum shortage.

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