Commission blocks MTN, Telkom transaction

Telkom CEO -Sipho-MasekoBy SAVIOUS KWINIKA
JOHANNESBURG, (CAJ News)– THE Competition Commission said it had opposed the approval of the proposed transaction between Telkom and MTN South Africa at the Competition Tribunal.

The two companies signed a heads of agreement in 2014 to extend their existing roaming agreement to include bilateral roaming and outsourcing of the operation of Telkom’s radio access network.

The Commission explained that if the deal was allowed to go ahead, it would have given MTN an advantage over other mobile networks.

Telkom Group Chief Executive Officer, Sipho Maseko, expressed disappointment.

“While the Commission’s decision is disappointing, Telkom and MTN have agreed not to proceed with the transaction, as we wish to avoid a protracted Tribunal hearing,” he said.

Maseko said over the past 18 months, their focused efforts to de-risk our mobile business had delivered a mobile division that was viable and sustainable.

“The mobile business will break even in this financial year and we are most encouraged by the stability that has been brought into our mobile environment. As previously communicated we will continue to explore all avenues to further strengthen our mobile business,” Maseko added.

– CAJ News

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Posted by on Aug 17 2015. Filed under Africa & World, Featured, Finance, Finance & Banking, Mobile & Telecoms, Technology. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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