Telkom-MTN deal would have been good for competition: MTN

MTN believes a deal between it and Telkom would have encouraged competition in the mobile market.

MTN said the deal would have fostered efficient use of the networks of both companies, and would have been to the benefit of the sector and the country by catering to data growth.

This comes after the Competition Commission recommended that the Competition Tribunal not approve a bilateral roaming agreement between the two operators and the outsourcing of the operation of Telkom’s radio access network to MTN.

“The transaction between MTN and Telkom would have constituted the first RAN infrastructure sharing arrangement in South Africa between two mobile network operators and was aimed at meeting the demand in the unprecedented global shift from traditional voice to data,” said MTN.

Following the Commission’s announcement, Telkom said it will not proceed with the deal to avoid a protracted Competition Tribunal hearing.

“It is regrettable that the matter is not moving forward,” said MTN, adding that it would have been able to demonstrate to the Competition Tribunal that the deal would boost competition.

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Telkom-MTN deal would have been good for competition: MTN