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 | Donovan Marsh on AI and the future of filmmaking

Award-winning South African film director Donovan Marsh has pivoted to artificial intelligence filmmaking and believes generative AI tools could fundamentally reshape how movies are made – and who gets to make them. Marsh, whose 30-year career includes directing the Hollywood submarine thriller Hunter Killer starring Gerard Butler and Gary Oldman,…
7 Apr 52 min

TCS+ | Vodacom Business moves to crack the SME tech gap

Everyone agrees that small and medium enterprises are the backbone of the South African economy. But the reality on the ground tells a different story – too many small businesses are still running on spreadsheets and WhatsApp, locked out of the tools that could help them compete. In this episode…
5 Apr 34 min

TCS | MTN’s Divyesh Joshi on the strategy behind Pi

MTN South Africa has launched Pi, a digital-only mobile operator that runs on MTN’s network but operates as a standalone brand, offering contract-free mobile and home 5G connectivity through a single app, with no call centres, no credit checks and no lock-in. In this episode of the TechCentral Show, TechCentral…
1 Apr 21 min

TCS | Anoosh Rooplal on the Post Office’s last stand

The South African Post Office has been in business rescue – a form of bankruptcy protection – since July 2023. Business rescue practitioners Anoosh Rooplal and Juanito Damons have made it clear to parliament that the entity will not survive liquidation unless a R3.8-billion bailout is received soon. With some…
27 Mar 27 min

Meet the CIO | Healthbridge CTO Anton Fatti on the future of digital health

Anton Fatti, chief technology officer of HealthBridge, says the doctor-patient relationship must remain at the centre of digital transformation in healthcare, even as AI reshapes how medical practices operate. Speaking on TechCentral’s Meet the CIO podcast series, brought to you by NTT DATA, Fatti said AI and cloud computing are…
23 Mar 45 min