By investing in shared, open-access fibre networks, Vodacom and Maziv can help drive more affordable retail broadband pricing and reduce barriers for smaller internet service providers.

Vodacom’s long-delayed plan to acquire a stake of up to 30% in Maziv, the parent company of Vumatel and Dark Fibre Africa, has gained new momentum after a breakthrough agreement with South Africa’s Competition Commission.

The Commission announced on Tuesday July 8 that it had reached a deal with Vodacom and Maziv that substantially addresses earlier competition concerns, paving the way for the merger to proceed — pending final approval from the Competition Appeal Court.

The merger had previously been blocked on the grounds that it would reduce competition between fixed-wireless access (FWA) and fibre-to-the-home (FTTH) services, potentially harming consumer choice and price competitiveness.

The new agreement introduces revised conditions designed to resolve these issues. Among the most critical changes are stronger capital expenditure commitments, with Maziv pledging to invest more aggressively over a five-year period to expand and maintain open-access fibre networks for third-party operators.

In addition, the revised conditions include enhanced coverage and connection targets. These stricter milestones will incentivize Vodacom and Maziv to price services competitively to meet connection goals and ensure broader fibre access.

Another key change is the commitment to maintain affordable broadband packages. Vodacom and Maziv have agreed to continue offering lower-cost options, ensuring that lower-income consumers can still access reliable internet services at reasonable prices.

The agreement also introduces stricter divestiture conditions. If overlapping infrastructure is not divested within a specified timeframe, a trustee will be appointed to oversee a forced sale, safeguarding competition and restoring pre-merger market dynamics.

Furthermore, the revised conditions include governance safeguards that limit the merged entity’s ability to foreclose competitors from essential infrastructure. To prevent anti-competitive behavior, a new fast-track interim relief mechanism has also been added, allowing swift intervention before lengthy investigations are completed.

Beyond competition remedies, the deal incorporates expanded public interest commitments. These include additional fibre rollout for businesses, homes, and critical sites, free 1Gbit/s fibre connections for public libraries and clinics, and wider connectivity support for police stations.

Vodacom first announced its intention to acquire a 30% stake in Maziv in 2021, but the deal faced repeated delays and was initially prohibited by both the Competition Commission and the Competition Tribunal on competition grounds. Welcoming the latest development, Vodacom Group CEO Shameel Joosub said: “We are thrilled with the Competition Commission’s decision, as it aligns with our purpose of connecting people to a better future and our vision of bridging the digital divide through world-class connectivity — reaching more homes and businesses, including underserved communities.”

Consequently, the Competition Commission will present its case to the Competition Appeal Court, outlining how the revised transaction conditions now resolve the concerns that prompted the Competition Tribunal to block the deal in October 2024. The Appeal Court is scheduled to review the matter on 22 July 2025.

South Africa has seen explosive growth in data consumption driven by remote work, online education, streaming, and digital services. According to ICASA, fixed broadband subscriptions grew by over 7.17% in 2023, with fibre-to-the-home (FTTH) connections leading this surge. Despite this progress, fibre penetration remains relatively low, with recent industry estimates suggesting that only about 28% of South African households have access to fibre infrastructure. This highlights a significant connectivity gap, particularly in townships and rural areas.

A strengthened partnership between Vodacom and Maziv could help address this gap by accelerating fibre rollout, expanding high-speed broadband access to more communities, and supporting national digital inclusion goals.

Hikmatu Bilali