Telecommunications group Vodacom is awaiting the Competition Tribunal’s detailed reasons for prohibiting its proposed transaction with Maziv before it takes action.

The Competition Tribunal on Tuesday said it was prohibiting the proposed transaction, with reasons to be provided in due course.

Following this, Vodacom will consider all options available, including potentially appealing the decision in the Competition Appeal Court.

“I am deeply surprised and disappointed by the Competition Tribunal’s decision,” said Vodacom Group CEO Shameel Joosub, highlighting Vodacom's investment of up to R14-billion, which South Africa “desperately needs”, especially in digital infrastructure in lower income areas.

“The proposed transaction was designed to assist Maziv in growing its fibre footprint into lower income areas and would have been highly beneficial for South Africa.”

Maziv is the recently formed fibre holding company of Vumatel and Dark Fibre Africa.

"Maziv acknowledges the recent decision by the Competition Tribunal prohibiting the proposed merger between Maziv and Vodacom. The company is disappointed by the outcome but respects the Competition Tribunal’s process," Maziv said in a statement sent to Engineering News.

"We will await the reasons for the prohibition in order to consider our options and remain committed to driving innovation and economic growth through the power of connectivity."

Joosub further pointed out that all the concerns of its competitors, which were involved in the Competition Hearings process, and the Department of Trade, Industry and Competition (DTIC), were comprehensively addressed through remedies and commitments by the parties.

During the Competition Tribunal proceedings, which concluded last month, the DTIC described the transaction as having “substantial positive public interest effects” on the basis that the merger parties, over a five-year period, committed to: invest at least R10-billion and pass at least one-million new homes, predominantly in low-income areas, as well as create up to 10 000 new jobs; establish a R300-million enterprise and supplier development fund to prioritise small, medium-sized and microenterprise development; provide high-speed Internet to over 600 adjacent schools and police stations at no cost; as well as Vodacom investing up to R14-billion into South Africa through the transaction.