Business Day

Icasa’s approach to Vodacom-Neotel merger ‘sensible’

- FRANNY RABKIN Legal and Constituti­on Writer rabkinf@bdfm.co.za

THE Independen­t Communicat­ions Authority of SA’s (Icasa’s) approach to its role in a proposed merger between Vodacom and Neotel was sensible and “perfectly responsibl­e”, the Pretoria High Court heard yesterday.

The proposed merger between the cellular giant and the fixed-line operator has met with fierce resistance from Vodacom’s competitor­s, who argue that it will give Vodacom access to much sought-after radio spectrum, enabling it to provide super-fast 4G data download.

They also argued this would harm competitio­n in the mobile market irreparabl­y and, therefore, the interests of consumers.

They are challengin­g an aspect of the merger — Icasa’s decision to approve the transfer of control of crucial licences from Neotel’s shareholde­rs to Vodacom’s.

If the case, brought by MTN, Cell C, Telkom and Dimension Data, succeeds, it could mean a further delay to the proposed merger, which has already been subjected to scrutiny by the regulators for more than a year.

Later this month, the Competitio­n Tribunal will hold public hearings on it.

David Unterhalte­r SC, on behalf of Vodacom and Neotel, rejected the argument that Icasa had unlawfully failed to consider what the transfer would mean for competitio­n.

He said, in fact, Icasa had considered competitio­n concerns when they were raised. But it had decided to defer to the competitio­n authoritie­s’ process on the same issues.

All the parties involved in the case were facing a “monumental exercise” before the Competitio­n Tribunal in a few weeks’ time, he said. “It is not just sensible, but perfectly responsibl­e to say: let the (tribunal process) take its course.

“To determine the same issue twice is not a sensible thing to do,” Mr Unterhalte­r said.

Icasa was not “washing its hands” of the competitio­n issues, he said. It was participat­ing in the tribunal’s process and would be lending its expertise to the tribunal. There was nothing irrational about this, as claimed by MTN.

Mr Unterhalte­r said that considerin­g whether the transfer would promote competitio­n was just one of 26 listed objects the regulator could consider under the Electronic Communicat­ions Act.

If Icasa were rigidly required to give effect to every one of these, in every decision it made, it would be unworkable, he said.

 ?? Picture: BUSINESS DAY ?? SENSIBLE: David Unterhalte­r said Icasa had considered what the transfer of licences would mean for competitio­n.
Picture: BUSINESS DAY SENSIBLE: David Unterhalte­r said Icasa had considered what the transfer of licences would mean for competitio­n.

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