Vodacom-Neotel deal can be fatal: Cell C

Cell C has warned that Vodacom’s planned acquisition of Neotel will threaten its business, and can have devastating effects on the local telecoms market. This is according to a report by Bloomberg.

Bloomberg reported that Cell C will tell regulators the deal shouldn’t be approved “because of the detrimental, indeed fatal, impact that this could have on competition in the electronic communications market”.

Cell C further warned that Vodacom will become “a super-dominant operator”, which will hurt competition and break the business model for new entrants in the telecoms market.

In May 2014 Cell C CEO Jose dos Santos said they will oppose any deal that is likely to lessen competition in the market.

Cell C is also opposing the planned network-sharing deal between MTN and Telkom. “As Cell C understands the proposed transaction, we do not agree with it,” said dos Santos.

MTN is also opposing the planned deal between Vodacom and Neotel, and questioned the transfer of spectrum between the two companies.

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Vodacom-Neotel deal can be fatal: Cell C