Altech hits back, saying it protected consumers
Altech ensures that MTN will not discriminate between VoIP and data prices
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Altech ensures that MTN will not discriminate between VoIP and data prices
now will mtn actually do what they say or just do what they shouldn't quietly?
The competition commission only gave the go-ahead for the merger - it does not insulate MTN from future action from the commission regarding their behavior.
Frankly - after the Tiger Brands thing, any company will think twice about doing it in people's faces. It is not worth it for MTN - because if they act anti-competitively on this, it might open a can of worms regarding their other business practices which deals with established revenue of magnitude an order or two greater than their ISP business.
I think you guys are not understanding the question I raised
1. MTNNS = ISP
2. MTNSA/SP = Mobile service provider
Now my question is this:
Does the VOIP charge Altech and MTN mentioned cover the MTNNS side or does it also cater for the MTNSA side.
Remember this is 2 completely different things. MTN could have said yes there will be no increased rate for VOIP in relation to the ISP side. However the VOIP rates still apply for the MTNSA/SP which is the "cellphone/Data" side.
This is 2 different things and there is no clarity if this applies to both.
Oh - I get what you are saying - but I think the issue was exactly this - that MTN will utilize its position as a cell phone network operator to get a anti-competitive advantage in the ISP business. This was only half of the issue before the competition commission, but that was the issue that Altech had.
Also - as far as I know MTN NS is wholly owned by MTN SP and they can't really play "this is a separate entity card".
Ref:Policing the deal
Irnest Kaplan, head of Kaplan Equity Analysts, says the acquisition is relatively small fry for the pan-African mobile operator, however, the agreement that the mobile operator made with Altech will have to be policed.
“It will be difficult to tell if MTN is subsidising Verizon, but I'm sure that Altech and the other players will watch the situation closely.”
He says that, while it needs to be policed, the deal will be a good shake up for the industry. “The smaller businesses will have to start thinking strategically, they will have to change the way they do business.”