Browsing: South Africa 2022

Vodacom recently agreed to purchase a co-controlling stake in the fibre assets held by Community Investment Ventures Holdings, increasing the competitive pressure on MTN.

MTN has declared that it will withdraw its operations from the Middle East by the end of 2020 to concentrate on the rapidly expanding African market.

According to AJ Snyman, an investment analyst at Peregrine Capital, the chances of the Competition Commission of South Africa approving the merger in its current shape are “nil.” This is the opinion that Snyman held.

“If the merger goes through, MTN and Telkom will have at least a 50 per cent market share in the mobile area, which is certainly a dominant market position,” Snyman said.

MTN would also gain access to Telkom’s valuable 3.2 gigahertz spectrum, which is suitable for 5G and would give it a dominating spectrum holding, he added. This would be advantageous for MTN.