Covid-19 has accelerated our transition to a digital economy, and times of crisis and volatility always mean increased opportunity for M&A.
Telkom has taken Vodacom to the Competition Tribunal because it deems the roaming agreement between Vodacom and Rain as a merger. Why are Telkom’s economists and experts so convinced that this is a merger? Could it be that Vodacom is using Rain’s valuable radio frequency for delivery of 4G? If so, it makes the “partnership” between Vodacom and Rain incredibly lucrative for Rain, perhaps to the tune of hundreds of millions of rand a month.
These are important to draw a fair conclusion whether Rain is treating Vodacom’s roaming subscribers as a priority over its own subscribers. A roaming partner will always protect its own customers’ service experience before allowing roaming visitors on its network that can potentially degrade its own customers’ experience. We do not know the answers to these questions.
As an ISP we continue to experience what we believe is an abuse of dominance by fibre network operators. We We hope that as independent ISPs our concerns will be addressed, because as our competition lawyer, Amy Jones of Truter Jones, says: “The Competition Act makes provisions that prohibit a dominant firm to refuse to give a competitor access to an essential facility when it is economically feasible to do so.”
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