Big news in the telecoms space today as Vodacom announces its intention to buy out Neotel. Rumours have been swirling for weeks around a potential buyout with Vodacom likely targeting the lucrative 800 MHz spectrum that Neotel owns which would allow Vodacom to roll out new services like LTE quicker and better than they currently can. The 800 MHz
The rumoured asking price is in the region of R5 billion which is only around 40% of the net profit that Vodacom made last year, practically a bargain then in those terms. The deal will be under heavy scrutiny from the Competition Commission who will no doubt take a look at the fact that the 2 will effectively be eliminating a competitor in the mobile space although Vodacom have said that the deal “would result in the combined entity being able to offer an expanded product range and, as a consequence, enhanced customer choice,”.