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South African Competition Tribunal denies Vodacom’s merger with Maziv

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The South African Competition Tribunal has blocked attempts by Vodacom to acquire a significant stake in Maziv, a subsidiary of Community Investment Ventures Holdings (CIVH).

If the proposed deal had sailed through, Vodacom would have held a 30% to 40% share in Maziv, combining its assets with those of Dark Fibre Africa (DFA) and Vumatel, two of the country’s largest fibre network operators owned by CIVH.

Media reports reveal that the deal was rejected after nearly two years of regulatory review, with the decision culminating in an extensive 26-day hearing that concluded in September 2024.

A statement by Vodacom which describes the decision as deeply surprising and a disappointment, said both the telecom company and Maziv are awaiting the Tribunal’s detailed rationale for the ruling and may consider an appeal through the Competition Appeal Court to explore other potential options for moving forward.

The Tribunal’s ruling came after the Competition Commission recommended the deal be prohibited due to potential risks to competition in the telecom sector and, consequently referred the matter to the Competition Tribunal.

This was after the Independent Communications Authority of South Africa (ICASA) approved the merger in November 2022, with Vodacom arguing that the merger would help bridge South Africa’s digital divide by expanding fibre connectivity in underserved communities.

As part of the deal, Vodacom would have committed to investing over R10 billion ($565.5 million) in fibre infrastructure, primarily in low-income areas, over five years.

“This investment aimed to pass over one million new homes with fibre connections, especially in under-resourced areas. The telecom giant planned to create up to 10,000 jobs, allocate R300 million ($17 million) to small business development, and extend free high-speed internet access to over 600 nearby schools and police stations,” the company had said in an earlier statement.

However, the Tribunal said 6vthe transaction would consolidate Vodacom’s standing as South Africa’s largest mobile operator with a dominant position in the fibre infrastructure market, potentially harming competition.

The ruling followed detailed testimony from several competitors, including MTN, Telkom, and Rain, as well as the Department of Trade, Industry and Competition (DTIC) with competitors expressing concerns that the merger would disadvantage smaller internet service providers, making it harder for them to compete fairly in the market.

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Again, Starlink raises prices of its services in Nigeria

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Elon Musk’s satellite internet service provider, Starlink, has again jacked up the prices of its services in Nigeria after an earlier increase caused uproar among customers.

The service provider, in a statement released on Friday, informed its Nigerian customers that it would raise its monthly subscription prices, with the new rates set to take effect on January 27, 2025.

Under the new pricing regime, the lowest subscription tier will increase significantly from ₦38,000 to ₦75,000 per month, while mobile global roaming service will now cost ₦717,000 monthly.

The company stated that new subscribers will immediately pay the adjusted prices while existing customers will see the changes reflected in their upcoming bills.

In an email sent to users, Starlink said:

“To continue enhancing the Starlink network and provide reliable, high-quality service across Nigeria, we are adjusting our monthly subscription prices.

“These changes are part of our ongoing commitment to investing in the infrastructure needed to improve your experience with Starlink.”

This is the second time Starlink has attempted a price hike in Nigeria. The Nigerian Communications Commission (NCC) has rejected its previous increase in October on the grounds that the company had not sought the necessary regulatory approval.

However, insiders believe the NCC is set to approve an increase in the first quarter of 2025, which gives credence to insinuations that Starlink may have gotten an approval for the price increments.

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Safaricom Ethiopia launches 4G network in Gambella

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Ethiopia’s second largest telecom provider, Safaricom Telecommunications Ethiopia P.L.C., has announced the official launching of its 4G network services in Gambella and other surrounding areas.

The launching of the 4G network in the region, according to Safaricom Ethiopia CEO, Wim Vanhelleputte, highlighted the significant impact that enhanced telecommunications infrastructure could have on the region’s social and economic progress.

“In line with our commitment to digital education, Safaricom Ethiopia donated 20 laptops and 4 routers, including six months of free internet, to two high schools in Gambella City, supporting digital literacy and educational opportunities for local students,” Vanhelleputte stated.

Vanhelleputte reaffirmed Safaricom Ethiopia’s commitment to expanding its reach and ensuring that more regions gain access to reliable and high-speed internet.

“The introduction of the 4G network in Gambella is designed to deliver significant advantages to the local community,” he said .

“Enhanced connectivity will open doors to better access to information, education, and healthcare services. Additionally, it will create new opportunities for businesses and entrepreneurs, driving economic growth and development within the region.

“Safaricom Ethiopia’s move into Gambella aligns with its broader strategy to extend 4G coverage to more areas, furthering its mission of fostering nationwide connectivity,” the CEO added.

Alemitu Oumud, President of the Gambella Region who also spoke at the event, stated that, enhanced infrastructure is driving positive social and economic growth in our region.

“We commend Safaricom Ethiopia for its contributions to job creation, improving connectivity, and making Gambella a more attractive destination for investment,” Oumud said.

He stressed the potential of the new 4G network to drive business activities, attract investments, and foster entrepreneurship in the region.

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