MTN Defends Itself Against Vodacom Legal Action

MTN Defends Against Vodacom Lawsuit: Vodacom recently took MTN South Africa, Cell C, and Liquid Intelligent Technologies to court. The company challenged the legality of their spectrum pooling arrangements.

The conflict, rooted in South Africa’s telecoms regulations, mirrors the fierce competition in the industry and raises questions about market fairness.

Vodacom had argued that these spectrum pooling arrangements gave MTN a competitive edge, and were approved in secret by Icasa, violating the law.

MTN Defends Against Vodacom Lawsuit

Vodacom’s CEO, Shameel Joosub, asserts that MTN’s superior network performance, evident in speed tests, can only be attributed to an unlawful amalgamation of spectrum beyond its licensed allocation. 

The legal battle intensified in May 2024 when Vodacom sought an urgent interdict from the High Court to halt these pooling arrangements, pending a review of ICASA’s decision.

Vodacom claims that ICASA’s approvals were granted secretly and without public consultation, violating procedural norms.

It further argues that the pooling agreements should have been reviewed by the Competition Commission as notifiable mergers.

MTN, in its defence, maintains that the spectrum pooling was conducted transparently and in accordance with the Electronic Communications Act. 

Marina Madale, MTN South Africa’s Acting Chief Sustainability and Corporate Affairs Officer, emphasised that spectrum pooling is a common practice globally and is sanctioned by South African regulations.

She argued that such arrangements enhance competition and efficiency, benefiting operators and consumers.

She said, “MTN is opposing Vodacom’s application. In its answering affidavit, we argue that Vodacom has failed to provide evidence to support an interdict of these pooling arrangements.”

“Given the impact on MTN, its partners, roaming customers, MVNOs, subscribers and the public, MTN believes that the request for interim relief should be dismissed.”

Also Read: Vodacom Sues Regulator Over Hidden Deals for Wireless Frequencies

MTN Says Vodacom Lawsuit Is Far-reaching

According to MTN, the implications of Vodacom’s legal challenge are far-reaching.

MTN warns that an interdict would degrade its network quality, impacting its subscribers. It will also impact wholesale ISPs, MVNOs.

Additionally, the network star went on to highlight that it would also affect other operators like Cell C and Telkom that roam on its network. 

This potential degradation could disrupt services for a substantial portion of the population, showing the critical nature of spectrum in maintaining network performance and capacity.

Also Read – Commission Says No to Vodacom-Maziv Merger

Looking Ahead

Vodacom’s legal challenge against MTN underscores the critical role of spectrum in the telecommunications industry and the complexities of regulatory compliance.

As the High Court deliberates on the interdict, the outcome will determine the immediate fate of these spectrum pooling arrangements.

It will also set a precedent for future regulatory practices and competitive dynamics in South Africa’s telecom sector. 

However, the stakes are high, with potential impacts on network quality, industry competition, and consumer benefits hanging in the balance.

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