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South Africa: Telkom files court appeal against Vodacom-Neotel deal

 |  July 19, 2015

South Africa operator Telkom has filed papers in the High Court requesting a review of the process undertaken by industry regulator Icasa when it approved the merger of Vodacom and Neotel, reports MyBroadband. Icasa approved the deal under a set of conditions, including maintaining equity ownership of individual licences by persons from historically-disadvantaged groups and requiring at least 25 percent of any broadband roll-out by Neotel be undertaken in under-serviced areas.

Icasa’s approval followed the recommendation from the Competition Commission to the Competition Tribunal that the merger be approved, but with conditions. The Competition Commission has its own conditions for the deal, which included a limitation on the use of Neotel’s spectrum by Vodacom. It recommended that Vodacom shall not directly or indirectly use Neotel’s spectrum for a period of two years from the approval date. It also requires Vodacom to commit to a ZAR 10 billion investment.

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