Will the Vodacom-Neotel deal go through?

Title and article topic ask different questions.
 
IANAL but as repeatedly set out my view:
On the current legal framework there should be no obstacle to Vodacom acquiring ownership of Neotel nor would it lessen competition in itself. However Vodacom cannot simply absorb Neotel and keep the spectrum allocation. In essence so long as Neotel remains a going concern Vodacom can acquire it and invest in a Neotel LTE network which Vodacom uses on a wholesale basis.

There is a golden opportunity for Vodacom to set strategic parameters for Neotel but if they are simply wanting to gut out a competitor it is not going to be allowed.
 
the article picture seems to speak eloquently to the experience which Neotel is going to have....

must have more information on how the deal will be structured before there can be intelligent comment
 
wish it was cellc buying neotel not vodacom coz this will just increase market domaination of vodacom, but on the other hand its good as this might be a catalysts for local loop unbundling depending on whether vodacom takes the same approach of unbundling the access to neotel when they buy it
 
Paul Hjul said:
IANAL but as repeatedly set out my view:
On the current legal framework there should be no obstacle to Vodacom acquiring ownership of Neotel nor would it lessen competition in itself. However Vodacom cannot simply absorb Neotel and keep the spectrum allocation. In essence so long as Neotel remains a going concern Vodacom can acquire it and invest in a Neotel LTE network which Vodacom uses on a wholesale basis.

There is a golden opportunity for Vodacom to set strategic parameters for Neotel but if they are simply wanting to gut out a competitor it is not going to be allowed.
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dominic said:
the article picture seems to speak eloquently to the experience which Neotel is going to have....

must have more information on how the deal will be structured before there can be intelligent comment
Click to expand...
^this^

We've had plenty of debate and discussion here on MyBB but it is all speculation based on the scraps that we have been fed. Neither VC nor neotel have publicly stated their concerns that pose a risk to the deal.

Bottom line, is it a good deal? Yes.
 
Reaper786 said:
Let vodacom get neotel maybe we can get better service from telkom because some idiot decided that telkom should be sole telecom provider now we stuck with ****ty service cause we got no where else to run to, now that neotel might be moved away from telkom we can see how a little competition can get those fkers to get there **** together at telkom.
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say what? :confused:
 
Reaper786 said:
Let vodacom get neotel maybe we can get better service from telkom because some idiot decided that telkom should be sole telecom provider now we stuck with ****ty service cause we got no where else to run to, now that neotel might be moved away from telkom we can see how a little competition can get those fkers to get there **** together at telkom.
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At least it's a paragraph :wtf:
 
MickeyD said:
Yes, for us. It should make VC less reliant on Telkom for backhaul, which SHOULD lead to drop in input costs.
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unless it leads to a practice by which the spectrum war becomes more contrived and massive amounts of money are used to gain a lock down on spectrum
 
marine1 said:
You are surely joking? But even if input costs come down how will that benefit us? Believe me they doing it to maximise more profits and abuse the fiber network
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Maximising profit is what companies do. They not a damn charity to hand out freebies to you.

Anyway. With VC and Neotels established infrastructure, its much easier to leech off eachothers services and provide a full converged service to business and the home.
I believe most service providers next big thing is fibre to the home. Thats good news for us consumers.
 
Gulio said:
Maximising profit is what companies do. They not a damn charity to hand out freebies to you.

Anyway. With VC and Neotels established infrastructure, its much easier to leech off eachothers services and provide a full converged service to business and the home.
I believe most service providers next big thing is fibre to the home. Thats good news for us consumers.
Click to expand...

Again you are missing the central qualifying problem: If Vodacom are acquiring in order to play regulator arbitrage and impose a spectrum lock there will be a big problem. We need a lot more details before we can definitively say this is a good thing. All and all I am confident and of the view that it is the way to go because of the regulatory framework in toto but I do fear that a special dispensation might arise which will stuff us around.
 
Paul Hjul said:
unless it leads to a practice by which the spectrum war becomes more contrived and massive amounts of money are used to gain a lock down on spectrum
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My view is based on VC being forced to keep neotel as a going concern if they want to retain the spectrum.
 
MickeyD said:
My view is based on VC being forced to keep neotel as a going concern if they want to retain the spectrum.
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Pretty much
The going concern issue really opens a heck of a lot of opportunities
Neotel Mobile as a VMNO and VMNE for example (curiously VC advanced VMNOs to the portfolio committee) - now that would be a project I'd love to work on
 
They might be a little more interested in going the VMNO route after this afternoon's ruling.
 
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