THE Competition Tribunal yesterday approved without conditions MTN’s acquisition of 69.4 percent of Verizon SA, far ahead of schedule.<\/p>\n
The tribunal had allocated five days for the hearings into the competition implications of the merger between the mobile operator and Internet service provider Verizon.<\/p>\n
However, following the withdrawal on Wednesday of the main opponent of the takeover, Altech, it gave the deal the thumbs up on the first day of hearings.<\/p>\n
Information technology firm Altech withdrew its opposing intervention after MTN gave it written assurances that it would not hinder competition.<\/p>\n
Altech and other competitors, such as Internet Solutions, had voiced concerns about bundling, input, customer foreclosure, the removal of an effective upstream infrastructure rival and avoidance of regulation.<\/p>\n
Tim Lowry, MTN SA managing director, expressed satisfaction with the tribunal’s decision.<\/p>\n
He said: “All regulatory conditions have now been met in order to proceed with the acquisition and MTN expects to complete the transaction soon.”<\/p>\n
MTN, the biggest cell phone operator in Africa with 21 operations globally, links up with the company whose parent, Verizon Communications, is the second-biggest telecommunications company in the US and has one of the most extensive networks in the world.<\/p>\n
Verizon Business SA provides telecommunications to corporate customers locally and in Namibia, Botswana, Zambia and Kenya.<\/p>\n
The deal is worth an estimated R1.4-billion and makes MTN one of the largest Internet service providers in the country.<\/p>\n
MTN has double the reason to celebrate. It received the green light from the tribunal on Tuesday to acquire the remaining 59 percent of cellular service reseller I-Talk Cellular in a deal worth more than half a billion rands.<\/p>\n
“Following on from the recent approval of the I-Talk Cellular acquisition, MTN is, through these deals, enhancing its value proposition, building capacity and broadening its reach,” said Lowry.<\/p>\n
With these deals and a 5000km national fibre-optic network, MTN SA is now poised to increase its profile in the local mobile market.<\/p>\n