SA network providers concerned by Tribunal blocking R13bn Maziv acquisition by Vodacom

IOL News

22-04-2025

The Association of Communications and Technology (ACT) has raised concerns about the impact of the Competition Tribunal blocking Vodacom Group from acquiring a 30% to 40% stake in fibre company Maziv for R13.2 billion.
The ACT - which represents leading network operators including MTN, Vodacom, Telkom, and Rain - on Friday said it believed the deal would have had a huge impact on Small, Medium and Micro Enterprises (SMMEs).
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In March, the Competition Tribunal prohibited the acquisition, which would have created the largest fibre company in South Africa, citing significant anti-competitive effects that outweighed limited public interest benefits.
The Tribunal found that the deal would harm competition in mobile and fibre services, affecting millions of South African consumers that would increasingly in the future be making use of data/internet services.
'Our decision bears heavily on us since it has implications for the millions of South African consumers that now and increasingly in the future require access to affordable data and internet services,' said the Tribunal then.
In an interview with Business Report on Friday, ACT CEO Nomvuyiso Batyi said that the transaction would have made a meaningful and positive difference, especially for the SMME community.
'The investment that was on the table carried the potential to directly support industry transformation goals. It could have injected much-needed capital into areas that often get overlooked, helping to stimulate innovation, growth, and access,' she said.
Batyi added that they saw the potential for it to shift the needle where it matters.
'It would have created real opportunities for small businesses and helped bridge the inequality gap in the sector while bridging the digital divide,' she said.
'Another overlooked element in all of this is the end-users who would've stood to benefit from the expansive infrastructure rollout that this deal could have made possible. What this means is slower progress in connecting underserved areas. It means another delay in bringing fibre to the townships and villages.'
Batyi said that connectivity was not just a catchphrase or a reference to telecoms infrastructure.
'It's much more than cables and towers. Connectivity is a tool for social cohesion it's what allows us to bridge divides, to bring people and communities together. It's about connecting SMMEs with mentors, funding, and real opportunities,' she said.
Batyi added that the ruling felt like a missed opportunity - particularly in the context of transformation.
'The proposed Enterprise and Supplier Development fund that was part of the merger had the potential to set the tone for how big players and smaller ones can work together meaningfully,' she said.
'In light of the President's State of the Nation Address call to action around supporting SMMEs, this was a practical chance to respond to that call.'
The reasons for the Tribunal's decision, which was finalised on October 29, 2024, were explained in a 350-page document only at the end of March 2025.
'Delayed rulings, lack of timely reasons, and processes that stretch out without closure lead to unnecessary uncertainty,' Batyi said.
'When parties are advised to revise and they do so in good faith, only to be rejected again, it raises real questions about the transparency and consistency of our regulatory framework.'
Batyi added that when it comes to inter-agency collaboration, they believe there is massive room for improvement.
She said that they needed a harmonised approach where competition principles were balanced with developmental goals and where the Constitution, particularly Sections 2 – the Supremacy Clause and 9 - The Equality Clause, were upheld.