Vodacom can’t have Neotel licences
Johannesburg - Vodacom Group, the South African unit of Vodafone Group, won’t be able to take control of licenses owned by Internet provider Neotel. as part of a proposed R7 billion ($449 million) acquisition, according to a court ruling.
Telkom appealed a ruling by the Independent Communications Authority of South Africa to approve the transfer of control of licences, spokeswoman Jacqui O’Sullivan said in an e-mailed statement.
The North Gauteng High Court granted the appeal in a Friday ruling, she said.
“Telkom welcomes the decision and believes that it was taken in the best interests of sustainability in the industry,” she said.
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Vodacom’s acquisition of Neotel from Tata Communications of India. was granted provisional approval by the country’s antitrust and communications regulators last year, and opposed by competitors MTN Group, Cell C and Telkom, which argued the tie-up would give Johannesburg-based Vodacom dominance of South Africa’s high-speed Internet market.
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