Blocking Vodacom's acquisition of a stake in Maziv would be hugely negative for the telecoms sector, experts have warned.
concerns that should the Competition Tribunal uphold a recommendation by the Competition Commission that Vodacom’s multibillion-rand deal to buy fibre operator Maziv be blocked, it would have a severely negative impact on the telecommunications industry.
But industry experts are concerned that South Africa’s telecoms sector will suffer should the deal not go through. Vumatel, a Maziv-owned company, has made big inroads into lower-income communities through its Vuma Reach and Vuma Key products. However, according to Pater, the company has accumulated billions of rand in debt and requires fresh capital to continue with its deployments.
Consolidation in the telecoms sector is not unique to South Africa. In more mature markets, including Europe, the US and Canada, there has been a trend towards two or three large players in the infrastructure space, complemented by a wider range of fibre internet service providers and mobile virtual network operators.
Maziv Fibre Fibre Deal Pieter Uys Dobek Pater
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