Minister
By Lerato Mpembe
Trade, Industry and Competition Minister, Parks Tau, has hailed the recent agreement between Vodacom, Maziv, and the Competition Commission as a pivotal moment for the nation’s digital future. Announced on 8 July 2025, this deal resolves long-standing concerns over the proposed Vodacom-Maziv merger, paving the way for improved access to affordable internet, especially in underserved communities. The agreement not only addresses competition issues but also introduces significant public interest commitments aimed at fostering economic inclusion and technological advancement.
A Rocky Path to Approval
The Vodacom-Maziv merger journey began in 2021 but hit significant roadblocks. In October 2024, the Competition Tribunal prohibited the deal following the Competition Commission’s recommendation. The initial rejection stemmed from fears that the merger would stifle competition in key telecom sectors, particularly 5G Fixed Wireless Access (FWA) and fibre infrastructure markets. The Tribunal worried that combining Vodacom’s mobile network with Maziv’s fibre assets—such as Vumatel and Dark Fibre Africa—might lead to higher prices and fewer choices for consumers.
However, after months of constructive dialogue, the merging parties and the Competition Commission reached a breakthrough. On 8 July 2025, revised conditions were agreed upon, addressing the Tribunal’s concerns and earning the Commission’s support. This turnaround has set the stage for the merger to move forward, pending final approval from the Competition Appeal Court on 22 July 2025.
Tackling Competition Concerns
The Competition Commission identified three major competition issues that needed resolution:
Horizontal Competition Between FWA and FTTH
The original conditions failed to ensure Maziv would continue supporting third-party network operators after the merger. The revised agreement strengthens Maziv’s capital expenditure (capex) commitment and extends it over five years. This ensures third-party operators retain access to competitive services, preserving market rivalry.
Overlapping FTTH Infrastructure
Concerns about potential price hikes due to overlapping fibre-to-the-home (FTTH) infrastructure were a sticking point. The updated conditions introduce a robust divestiture process: if the merging parties don’t sell overlapping assets within a set timeframe, a trustee will step in to ensure the assets are sold, restoring pre-merger competition levels.
Vertical Foreclosure Risks
There were worries that the merged entity could limit competitors’ access to essential infrastructure. The new terms include governance changes at Maziv to reduce foreclosure incentives. Additionally, an enhanced fast-track interim relief process allows swift action against any foreclosure attempts, protecting competition while formal investigations proceed.
These revisions have convinced the Competition Commission that the merger can proceed without undermining South Africa’s telecom market.
Public Interest Commitments: Bridging the Digital Divide
The agreement goes beyond competition fixes, delivering substantial public interest benefits aimed at transforming internet access across South Africa. Key commitments include:
Expanded Infrastructure Investment: Additional capex will fund new Fibre-to-the-Business (FTTB), Fibre-to-the-Home (FTTH), and Fibre-to-the-Site (FTTS) rollout, targeting underserved areas.
Free High-Speed Internet for Public Facilities: Libraries and clinics near FTTH infrastructure will get free 1Gigabit-per-second fibre connections, boosting education and healthcare access.
Support for Police Stations: Vodacom will supply more police stations with FWA products, enhancing public safety connectivity.
Economic Empowerment: The deal includes enterprise development initiatives and an expanded employee share ownership plan, creating opportunities for job growth and ownership.
These measures aim to make internet access more affordable and widespread, particularly for rural and low-income communities, aligning with Minister Tau’s vision for economic inclusion.
Minister Tau’s Perspective: A Digital Leap Forward
Minister Parks Tau has been a strong advocate for the merger, emphasizing its potential to drive economic growth and job creation. In a statement on 9 July 2025, the Department of Trade, Industry and Competition (dtic) noted that the public interest commitments will “significantly improve access to affordable internet for underserved communities,” enabling greater participation in economic activities, especially for young people.
Tau sees the merger as a stepping stone to position South Africa in cutting-edge sectors like Generative Artificial Intelligence (AI) and the Internet of Things (IoT). “This commitment will ensure that South Africa participates meaningfully in the global economy through new sectors… which will propel the world into the future,” the dtic said. He also praised the collaborative efforts of all parties involved in reaching this agreement.
What This Means for South Africa
If approved, the Vodacom-Maziv merger could reshape South Africa’s digital economy. By merging Vodacom’s mobile expertise with Maziv’s fibre networks, the deal promises faster, more affordable internet rollout nationwide. For everyday South Africans, this could mean better access to online education, job opportunities, and essential services—especially in areas previously left behind.
Imagine a young student in a rural township using free library internet to learn coding, or a small business owner in a low-income area connecting with customers online thanks to affordable fibre. These are the real-world impacts Minister Tau and the merging parties hope to achieve.
The Next Step: Competition Appeal Court
The agreement now heads to the Competition Appeal Court on 22 July 2025 for final review. With the Competition Commission’s backing and no opposition, approval seems likely. However, the court will ensure the revised conditions are enforceable and deliver the promised benefits.
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