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South Africa: Vodafone takes dig at network share price caps

 |  February 5, 2014

Vodafone’s operations in South Africa are reportedly set to take action against regulatory price caps imposed upon wireless operators for using each others’ networks.

While the caps are intended to aid smaller competitors, Vodafone claims they cut profits to the largest networks, who have also invested the most in the spectrum.

The Independent Communications Authority of South Africa first announced last month plans to cap fees charged by rivals for use of networks, resolving that higher fees can harm competition.

But Vodafone, which stands to lose up to $90 million in the coming year from the regulation, says that the authority’s decision does not take into account the cost of running those networks. The company announced Wednesday plans to launch a legal challenge to the policy.

Full Content: Reuters

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