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+ | The retirement decision most South Africans get wrong

What happens to your retirement savings when you leave an employer is one of the most consequential financial decisions most South Africans will make – and one of the most commonly mishandled. In this podcast conversation with Mpho Chitapi, 10X Investments senior investment consultant Michael Rossouw sets out what should…
6 May 55 min

TCS | The Cape Town start-up listening for TB with AI

AI Diagnostics, a Cape Town-based med-tech company that has built an AI-powered stethoscope designed to detect tuberculosis, recently raised R85-million in a pre-series-A funding round. In this episode of the TechCentral Show (TCS), Nkosinathi Ndlovu speaks to the company’s CEO, Braden van Breda, about the funding round and its mission…
4 May 36 min

TCS+ | ‘The ISP for ISPs’: Vox’s shift to wholesale aggregator

Vox, a well-established retail internet service provider is expanding its services to the wholesale market through aggregation. In this episode of TechCentral’s podcast series TCS+, Andre Eksteen, senior product manager for fibre to the business at Vox, discusses the rationale behind this strategy and the services Vox is offering as…
20 Apr 16 min

TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

The pace at which artificial intelligence is reshaping the threat landscape is outstripping the ability of most organisations to defend themselves, with shadow AI, synthetic identity attacks and a looming quantum computing disruption all converging at once. That’s the view of DataGroupIT CEO Werner Lindemann, who joined Duncan McLeod on…
15 Apr 38 min

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