Government\u2019s plan to merge Broadband Infraco with Telkom will reduce competition and be bad for consumers, Rapport reported.<\/p>\n
Telecommunications experts and mobile operators have warned that the merger could lead to higher call costs if it is allowed to go ahead.<\/p>\n
This comes after a BusinessDay report stating that Infraco and Telkom are likely to merge<\/strong><\/a>.<\/p>\n MD of World Wide Worx and industry analyst Arthur Goldstuck told Rapport that such a merger would entrench Telkom\u2019s telecommunications monopoly and tremendously weaken fair competition.<\/p>\n Not only does Telkom own a massive copper network used to supply ADSL and fixed-line telephone services, it also owns and operates South Africa\u2019s largest fibre network.<\/p>\n With over 147,000km of fibre in the ground, Telkom\u2019s fibre network dwarfs anything its competitors has to offer.<\/p>\n A merger with Infraco will add another 14,676km of fibre to Telkom\u2019s already vast network, Rapport said.<\/p>\n It will also force Neotel, which prided itself on being able to offer its services without touching Telkom\u2019s network<\/strong><\/a>, to buy wholesale services from the state-owned company.<\/p>\n Neotel has been using the alternative fibre network since before it was entrusted to Infraco.<\/p>\n Cell C and Vodacom told Rapport that if government wants to get rid of Broadband Infraco, it must be sold through a transparent process in which everyone must have the opportunity to bid.<\/p>\n The full report is available in the Rapport of 10 April 2016.<\/em><\/p>\n Neotel\u2019s massive Broadband Infraco headache<\/strong><\/a><\/p>\n Telecoms minister avoids Telkom-Broadband Infraco merger questions<\/strong><\/a><\/p>\n Telkom and Broadband Infraco merger on the cards: report<\/strong><\/a><\/p>\nMore on Telkom and Broadband Infraco<\/h3>\n