Cell C has told the South African Competition Commission that it is opposed to a network-sharing deal between MTN and Telkom. This is according to a report by Bloomberg.
Bloomberg quoted Cell C CEO Jose dos Santos as saying that “As Cell C understands the proposed transaction, we do not agree with it”.
Telkom announced on 7 March 2014 that it had entered into a Heads of Agreement (HoA) with MTN South Africa.
According to Telkom, the HoA explains that the parties intend to conclude network management services and reciprocal roaming agreements.
Under these agreements MTN will take over financial and operational responsibility for the rollout and operation of Telkom’s radio access network (RAN).
According to MTN the planned Telkom Mobile infrastructure sharing deal will enable it to create a 4G data network at the lowest cost possible.
This is not the only deal which Cell C is opposing. The company previously said that it will oppose Vodacom’s planned acquisition of Neotel.
“We oppose any deal that is likely to lessen competition in the market and it is our view that entrenching the dominance of an already dominant player will not be in the interest of the industry, the consumer, or the wider South African economy,” Dos Santos said.