As part of the merger, Maziv has committed to spending at least R12 billion, particularly in underserved areas.
The Competition Commission has greenlit the merger of Maziv and Vodacom after at least three years of wrangling.
The deal includes Vodacom acquiring a 30% interest in Maziv. In addition, Vodacom plans to transfer fibre assets to Maziv.
Previously, the Competition Tribunal had said the deal is not in the best interest of the public and would lessen competition, particularly in the market for 5G Fixed Wireless Access (FWA) and fibre.
However, after Maziv and Vodacom reworked their deal, the Competition Commission approved it. Maziv has welcomed the approval, labelling it as “a critical milestone in South Africa’s telecoms landscape”.
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Maziv to spend R12 billion
Vodacom is one of South Africa’s largest mobile operators, while Maziv is one of the largest fibre infrastructure players.
The two had to revisit the agreement and ensure it encourages investment and safeguards fair competition.
“As part of the merger conditions, Maziv has committed to spending at least R12 billion over the next five years, earmarked for broadband infrastructure expansion and maintenance, particularly in underserved areas,” said Dietlof Mare, Maziv Group CEO.
Data for low-income areas
As fibre deployments slowdown in the country, Maziv said it aims to unlock the potential of internet connectivity for lower-income homes, to ensure more South Africans in remote areas participate in the digital economy.
The reworked deal between the two includes fibre expansion into underserved low-income areas, clinics, libraries, and schools, building on Maziv’s existing school connectivity program that currently connects more than 950 schools with free 1Gbps uncapped fibre.
“This expansion will bring reliable, high-speed connectivity to spaces essential for learning, safety, and community development,” adds Mare.
“These commitments are coupled with open access requirements, affordable broadband options for low-income households, and transformation measures that support small, medium and micro enterprises (SMME) growth, employee benefits, and community upliftment.”
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Icasa approval needed
He noted that the merger still needs approval from the Independent Communications Authority of South Africa (Icasa), and he is confident that they will receive a positive outcome.
“Our regulatory engagement has been transparent and constructive, and we will engage constructively to secure the final approval and begin delivery on the promises to South Africans.”
Accessibility and affordability
At the centre of the merger is prioritising internet accessibility and affordability for South Africans.
“Equally important is Maziv’s pledge to maintain open access and non-discrimination across its network.
“Conditions attached to the merger transaction ensure smaller internet service providers (ISPs) retain access to fibre infrastructure, ensuring that consumers continue to have choice and that competition remains healthy and fair.”
