Vodacom, Neotel deal pegged at R5 billion: report

[rpm]

Vodacom, Neotel deal pegged at R5 billion: report

Vodacom has reportedly entered into exclusive negotations to acquire Neotel for R5 billion (US$502 million), Bloomberg reported.

 

[marine1]

These guys talk in telephone numbers

 

[Paul Hjul]

they had better have another 2 or 3 billion ready to invest into Neotel for this deal to actually bring value to Vodacom
they can't - for reasons advanced before - simply buy Neotel's spectrum and so they will actually have to build Neotel into a wholesale LTE operator and have Vodacom as a service provider handling LTE sales.

 

[Dlamaqhinga]

I'm sure Vodacom have the money to capitalize Neotel

they had better have another 2 or 3 billion ready to invest into Neotel for this deal to actually bring value to Vodacom
they can't - for reasons advanced before - simply buy Neotel's spectrum and so they will actually have to build Neotel into a wholesale LTE operator and have Vodacom as a service provider handling LTE sales.

 

[Paul Hjul]

O they most certainly do

and it would be great if the plan is to put 7 billion into building a wholesale LTE and Fibre business venture

 

[falcon786]

so they will actually have to build Neotel into a wholesale LTE operator and have Vodacom as a service provider handling LTE sales.

AKC will be their first customer so even though they are leeching customers to Cell C they can still be profitable about it.

 

[Paul Hjul]

I am actually not entirely sure whether non-discrimination principles etc ... would apply for an LTE wholesale operation or whether a Vodacom owned Neotel would be able to sell at a different price to different operators. The point though is that I doubt CellC will actually be able to sell LTE on somebody elses network particularly successfully and that they will have to work on really thin margins etc ....