MTN broadens Verizon
THE Competition Tribunal yesterday approved without conditions MTN’s acquisition of 69.4 percent of Verizon SA, far ahead of schedule.
The tribunal had allocated five days for the hearings into the competition implications of the merger between the mobile operator and Internet service provider Verizon.
However, following the withdrawal on Wednesday of the main opponent of the takeover, Altech, it gave the deal the thumbs up on the first day of hearings.
Information technology firm Altech withdrew its opposing intervention after MTN gave it written assurances that it would not hinder competition.
Altech and other competitors, such as Internet Solutions, had voiced concerns about bundling, input, customer foreclosure, the removal of an effective upstream infrastructure rival and avoidance of regulation.
Tim Lowry, MTN SA managing director, expressed satisfaction with the tribunal’s decision.
He said: “All regulatory conditions have now been met in order to proceed with the acquisition and MTN expects to complete the transaction soon.”
MTN, the biggest cell phone operator in Africa with 21 operations globally, links up with the company whose parent, Verizon Communications, is the second-biggest telecommunications company in the US and has one of the most extensive networks in the world.
Verizon Business SA provides telecommunications to corporate customers locally and in Namibia, Botswana, Zambia and Kenya.
The deal is worth an estimated R1.4-billion and makes MTN one of the largest Internet service providers in the country.
MTN has double the reason to celebrate. It received the green light from the tribunal on Tuesday to acquire the remaining 59 percent of cellular service reseller I-Talk Cellular in a deal worth more than half a billion rands.
“Following on from the recent approval of the I-Talk Cellular acquisition, MTN is, through these deals, enhancing its value proposition, building capacity and broadening its reach,” said Lowry.
With these deals and a 5000km national fibre-optic network, MTN SA is now poised to increase its profile in the local mobile market.
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