South Africa's Competition Commission rejects Telkom, MTN deal

Johannesburg, South Africa

South Africa‘s Competition Commission has rejected a networking sharing transaction proposed by operators Telkom and MTN South Africa.

Under the proposal the telcos wanted to expand the extent of their mutual networking sharing to achieve increased coverage for both networks. In March 2014, part-state owned operator Telkom announced it had signed a Heads of Agreement (HoA) with MTN South Africa, which provided for bilateral network roaming and the outsourcing of the operation of Telkom’s radio access network.

The agreement was subject to regulatory approval, and yesterday the Competition Commission announced it has not recommended the approval of the proposal to the Competition Tribunal, based on the deal’s potential to negatively impact competition in the market.

Read more: Competition Commission rejects Telkom, MTN deal – Developing Telecoms