ISPA objects to Vumatel-Vodacom merge at Competition Commission

[Jan]

Internet service providers launch objection to Vumatel-Vodacom merge

South Africa’s Internet Service Providers’ Association (Ispa) has asked for a commitment from Vodacom and CIVH that the Vumatel and DFA fibre networks will remain open access.

Vodacom and Community Investment Ventures Holdings (CIVH) announced a R13.2-billion deal in November that would see the fibre assets of both companies being merged into one network.

 

[quovadis]

Being open and being neutral are not the same.

 

[freematrix]

Vodacom will have direct access to every ISP's user base on Vumatel and DFA

 

[Johand]

Vodacom will have direct access to every ISP's user base on Vumatel and DFA

Huh? How do you come to that conclusion? Vodacom will own less than 50% of the combined company -- it won't become a Vodacom subsidiary...

I am all for the deal if it means the Vodacom fibre is opened up. Against the deal if the Vodacom influence cause Vumatel to become less open. But in general I am not worried -- the open access model for Vumatel works a lot better for them than Vodacom's model work for Vodacom.

I personally think the biggest competition issue is not so much on the consumer side directly -- backhaul on DFA is a bigger issue for me. If DFA increase their prices Vodacom will get back the money but other users not, so they can negatively affect other fibre and wireless providers.

 

[PHeX]

Is there a way to force Closed Access FNO's to become Open access? Otherwise I will be stucked with HeroTel's worthless service.

 

[quovadis]

Huh? How do you come to that conclusion? Vodacom will own less than 50% of the combined company -- it won't become a Vodacom subsidiary...

Really? Minority shareholders are not privy their businesses' activity? Even if the granular data of individuals is somehow protected they would be privy to areas where Vumatel is getting greatest results - compare that Vodacom's own customer data and then know which areas are growth opportunities for conversion of competitors customers?