Vodacom to face competition probe

Vodacom will face a probe by the Competition Commission after rival operator, Cell C, lodged a formal complaint alleging market dominance abuse.

On Monday the group published its financial results for the year ended March 2014, highlighting an 8% rise in revenue to R75.7 billion.

Service revenue lifted 4.7% to R62 billion from R59.3 billion in 2013, with operating profit up 7.9% to R20.4 billion.

Headline earnings per share of 896 cents was up 2.8%, while the group announced a final dividend per share of 430 cents, giving total dividend per share of 825 cents.

Group active customers increased 13.8% to 57.5 million, with 7.0 million net connections in the year.

The group said it has reached an agreement to acquire 100% of the issued share capital in, and shareholder loans against Neotel for a total cash consideration of R7 billion.

Vodacom also said that Cell C lodged a complaint with the Competition Commission.

“The Group received a complaint from the Competition Commission in which it is alleged that Vodacom South Africa have abused their market dominance in contravention of
Section 8(a), 8(c) and 8(d) (i) of the Competition Act.

“Vodacom South Africa has received further communication that the screening phase has been completed and the Competition Commission shall further investigate the complaint,” Vodacom said.

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Vodacom to face competition probe