Neotel hopeful on Vodacom spectrum transfer

Paul Hjul

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I am not sure Neotel's (or for that matter Vodacom's) understanding of "the right decision for South Africa" is the same as the ordinary public. More importantly I don't think it is exactly in line with the structure of the industry mandated in the ECA.
 

Paul Hjul

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What will happen if their hopes are dashed?
my guess is that they are going with the "political solution" approach - and this makes me livid to be completely frank

It is deeply problematic for a special dispensation to be given to enable the acquisition of a special licence holder (Neotel having entered the equation as an SNO) that has special access to parastatal locations (airports, railways etc ...) and is piggy backing part of its network on a special tax payer funded dispensation (Infraco) into one of the largest companies in the country. Vodacom has every right to buy Neotel and for Neotel to retain their spectrum as a going concern, but spectrum transfers need to be legislated for in general and broad terms and if Neotel ceases to exist it ceases to have spectrum and the spectrum goes into the general pool.
 

drs

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Apr 23, 2008
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and is piggy backing part of its network on a special tax payer funded dispensation (Infraco)
We've been told by Neotel that they have to pay BBI for the services which they use to provide us with service. Theoretically at least, any other licensed operator can purchase the same services from BBI. So your choice of term "piggy backing" is a somewhat unfair to Neotel.
 

House

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Aug 17, 2006
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South African Networks will not stand for this at all. Expect huge increases in prices as they are definitely going to take their cut from this as well. These type of technological advancements are not always positive for a country such as ours, but would be more beneficial for those living in more advanced countries.
 

Paul Hjul

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We've been told by Neotel that they have to pay BBI for the services which they use to provide us with service. Theoretically at least, any other licensed operator can purchase the same services from BBI. So your choice of term "piggy backing" is a somewhat unfair to Neotel.
granted, and it actually should be emphasised that everybody in the national sphere except for Telkom benefited from the Infraco creation - and if things were done better it would be good for everybody.
the purport though relates to the creation of BBI
 

jetlee

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Oct 31, 2006
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OK, Im confused ...

- Neotel was originally created to be Telkoms fixed line competition
- The original fixed line compitition was Telkom
- Telkom used to own Vodacom
- Vodacom was "technically" ubundled from Telkom
- Vodacom now owns Neotel

?????

How did this not get the bullet by the competition commission ?
 

marine1

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Sep 4, 2006
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47,913
OK, Im confused ...

- Neotel was originally created to be Telkoms fixed line competition
- The original fixed line compitition was Telkom
- Telkom used to own Vodacom
- Vodacom was "technically" ubundled from Telkom
- Vodacom now owns Neotel

?????

How did this not get the bullet by the competition commission ?
Money talks
 
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