Verizon deal: MTN placates rivals

Johannesburg - MTN had assured its industry rivals it would act in a 'non-discriminatory' manner on completion of its proposed acquisition of Verizon SA - an undertaking which stood behind Altech's decision to step back from its objection to the deal.

Altech last year was given leave by the Competition Tribunal to question MTN's proposed takeover of internet services company Verizon SA, a subsidiary of US giant Verizon.

At the time, Altech said it was concerned about the effects of MTN's control over the provision of vital services to the telecommunications industry.

Said Bradley Scop, an attorney with Routledge Modise which is acting for Altech: "MTN has given a number of general undertakings in respect with the way it proposes to conduct the Verizon business.

"These undertakings have given Altech satisfactory comfort to address its competition law concerns."

The deal between MTN and Verizon European Holdings sees the latter selling its 69.38% interest in Verizon South Africa to MTN.

According to a press release issued by the Competition Tribunal, a number of third parties - which included virtually all competitors - voiced concerns around bundling, input and customer foreclosure, the removal of an effective upstream infrastructure rival and avoidance of regulation.

"During the Competition Commission investigation in particular, the competitors were concerned that the merged entity would be in a stronger position to discriminate against rivals in respect of infrastructure, interconnection, gateways both locally and internationally.

"The commission said it considered these concerns and concluded that the merged entity was unlikely to exclude its rivals and recommended the transaction be approved without condition.

- Fin24.com