The Independent Communications Authority of South Africa (ICASA) notes the ongoing media reports of potential mergers and acquisitions in the ICT sector. These include, Vodacom and Neotel, MTN and Telkom and the latest being reports of Telkom’s bid to acquire Business Connexion. While, consolidation is a global phenomenon and anticipated in the market, all such deals may require regulatory approval.
While, operators have been in discussions and some have informed the Authority of their intentions, none of these transactions have come before ICASA. The Authority is aware of what is currently before the Competition Commission; and in accordance with our institutional arrangements with the Competition Commission we will collaborate, however, that in no way negates the regulatory approvals required from ICASA.
There have been insinuations in the media to the effect that some of these developments are as a result of ICASA’s delay in allocating or making more spectrum available to the industry.
Be that as it may, it is equally important to note that in 2011, ICASA attempted to open up the licensing process for high demand spectrum (2.6GHz and 800MHz) by issuing an Invitation To Apply (ITA); and the industry partly opposed this process on the basis of a lack of a policy direction. This process was subsequently deferred pending the finalization of the policy direction.
That licensing process sought to, among others things; achieve the following national policy objectives:
- Facilitate the introduction of new national and rural providers of electronic communications, including broadband
- Ensure that participating licensees contribute to broad-based black economic empowerment.
ICASA will make a detailed comment on the mergers as soon as it has been presented with the substance and details of the deals between these licensees.
For all media enquiries:
Paseka Maleka
Cell: 079 509 0702
Tell: 011 566 3455
Email: pmaleka@icasa.org.za
