ACT calls on the Competition Tribunal to review its decision to block the Vodacom-Maziv merger

[mylesillidge]

Shadow over South Africa's fibre networks

Association of Comms and Technology (ACT) CEO Nomvuyiso Batyi has called on the Competition Tribunal to review its decision to block the Vodacom-Maziv merger.

Announced in 2021, the deal would have seen Vodacom acquiring a 30% to 40% stake in the Vumatel and DFA parent company for upwards of R13 billion in cash and assets.

 

[quovadis]

So an association of entrenched/dominant players are arguing that further consolidation is needed or else further investment and jobs are impossible?

 

[The_MAC]

How about first monetising the existing investment? Why is fibre uptake so low? I suspect people can't afford it..

 

[Bad Ballie]

How about first monetising the existing investment? Why is fibre uptake so low? I suspect people can't afford it..

This is the crux of the matter, people are not able to afford it, and those that could a year or two ago are now starting to downgrade their packages as the costs get ever higher. The vat increase will add to the problem. While the attempt to roll out services to low income areas is admirable, the reality is that someone has to pay more to finance these loss making projects and the middle class has less disposable income with each bright idea the ANC come up with.

 

[nodski]

We're watching classic enshittification in action with Dark Fibre Africa. A provider that once focused on reliable, cost-effective open-access fibre is now pushing relentless price increases, reducing value for ISPs while locking them into less favorable terms. The original promise of enabling competition and affordable connectivity is being eroded by short-term profit-maximizing tactics — a textbook case of a platform that builds trust and utility, then extracts more while offering less. This is how markets stagnate and innovation stalls.

 

[quovadis]

We're watching classic enshittification in action with Dark Fibre Africa. A provider that once focused on reliable, cost-effective open-access fibre is now pushing relentless price increases, reducing value for ISPs while locking them into less favorable terms. The original promise of enabling competition and affordable connectivity is being eroded by short-term profit-maximizing tactics — a textbook case of a platform that builds trust and utility, then extracts more while offering less. This is how markets stagnate and innovation stalls.

Imho nothing about this deal increases competition.

 

[nodski]

Imho nothing about this deal increases competition.

Exactly — that’s the point. DFA did increase competition when they entered the market, but what we’re seeing now is classic enshittification: leverage the goodwill and utility built over time, then slowly turn the screws. The proposed merger isn’t pro-competitive — it’s the final phase of that shift. What started as a competitive force is now morphing into another gatekeeper, squeezing ISPs and ultimately harming end-users.