A battle over powers and jurisdiction between two of the country’s major regulators – the Competition Commission and the Independent Communications Authority of SA (Icasa) – has drawn the main mobile operators into their net.
The commission is responsible for promoting competition in the economy with oversight over mergers and acquisitions that affect this‚ while Icasa is responsible for the regulation of the telecommunications sector.
These roles have overlapped in the case of the R7-billion merger between Vodacom and Neotel.
At issue are the terms and conditions attached by the commission to its approval of the merger‚ with which Icasa is not satisfied.
To bolster its case‚ Icasa has asked the Competition Tribunal for access to highly confidential documents that were submitted to the commission during its deliberations on the merger.
The tribunal is due to consider the commission’s recommendation that it approve the merger with conditions next month.
Icasa believes its ability to intervene effectively depends on its having access to all the information relating to competition issues that were placed before the commission.
It has sought a directive from the tribunal under section 45 of the Competition Act to grant its staff access to the confidential merger record‚ as well as “to all the confidential documents and data discovered‚ and to be discovered” by all the parties to the merger proceedings before the tribunal.
This could include confidential documents submitted not only by Vodacom and Neotel‚ but also by MTN‚ Cell C‚ Telkom and Dimension Data‚ which are strongly opposed to Icasa’s application. Vodacom’s rivals opposed the merger on the grounds that it would give the mobile operator an unfair advantage and access to Neotel’s lucrative spectrum.
One of the companies was concerned that Icasa’s access to its private documents would compromise its application for new spectrum and other applications. Vodacom flagged the security risk should Icasa staff leave to join rival companies.
Vodacom argued that‚ should the tribunal decide in favour of Icasa‚ certain critical information be excluded from its access‚ including its future spectrum requirements and roll-out as well as its strategies and forecasts.
Telkom also opposed the scope of Icasa’s intervention. Its case against Icasa’s approval of the Vodacom-Neotel merger will be heard in the high court in the next month and it argued that Icasa’s application to the tribunal violates the sub judice rule.
The Competition Tribunal has reserved judgment on the Icasa application. — BDLive
Confidentiality issue stalls merger
The commission is responsible for promoting competition in the economy with oversight over mergers and acquisitions that affect this‚ while Icasa is responsible for the regulation of the telecommunications sector.
These roles have overlapped in the case of the R7-billion merger between Vodacom and Neotel.
At issue are the terms and conditions attached by the commission to its approval of the merger‚ with which Icasa is not satisfied.
To bolster its case‚ Icasa has asked the Competition Tribunal for access to highly confidential documents that were submitted to the commission during its deliberations on the merger.
The tribunal is due to consider the commission’s recommendation that it approve the merger with conditions next month.
Icasa believes its ability to intervene effectively depends on its having access to all the information relating to competition issues that were placed before the commission.
It has sought a directive from the tribunal under section 45 of the Competition Act to grant its staff access to the confidential merger record‚ as well as “to all the confidential documents and data discovered‚ and to be discovered” by all the parties to the merger proceedings before the tribunal.
This could include confidential documents submitted not only by Vodacom and Neotel‚ but also by MTN‚ Cell C‚ Telkom and Dimension Data‚ which are strongly opposed to Icasa’s application. Vodacom’s rivals opposed the merger on the grounds that it would give the mobile operator an unfair advantage and access to Neotel’s lucrative spectrum.
One of the companies was concerned that Icasa’s access to its private documents would compromise its application for new spectrum and other applications. Vodacom flagged the security risk should Icasa staff leave to join rival companies.
Vodacom argued that‚ should the tribunal decide in favour of Icasa‚ certain critical information be excluded from its access‚ including its future spectrum requirements and roll-out as well as its strategies and forecasts.
Telkom also opposed the scope of Icasa’s intervention. Its case against Icasa’s approval of the Vodacom-Neotel merger will be heard in the high court in the next month and it argued that Icasa’s application to the tribunal violates the sub judice rule.
The Competition Tribunal has reserved judgment on the Icasa application. — BDLive
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