Vodacom acquisition of Neotel could face industry body objection

South Africa’s Wireless Access Providers’ Association (WAPA) says that it would object to any attempt by Vodacom to buy the country’s second largest landline operator, Neotel and said it was watching developments carefully before formulating a formal response.

WAPA believes that the acquisition would stifle competition, lead to job cuts, and do little to reduce the digital divide that it believes should be the country’s top priority with regard to broadband.

"The growth in smaller operators is good for the customer and good for the country," said Christopher Geerdts, chairperson of WAPA. "It increases competition, creates jobs and drives rural broadband penetration. Larger operators tend to cut jobs and cherry-pick customers in the most lucrative suburbs and business parks."