MTN has moved closer to taking full control of IHS Towers in South Africa after the country’s Competition Commission approved the telecommunications giant’s proposed $2.2 billion acquisition, subject to conditions designed to protect rival network operators.
The approval means MTN can proceed with the transaction, but the company will face restrictions over how the tower infrastructure is managed once it comes under its control.
The South African competition regulator approved the deal on September 30, requiring IHS Towers’ infrastructure to remain accessible to competing telecommunications operators on fair and non-discriminatory terms. Brandspur Brand News reports that the conditions are aimed at preventing MTN from using ownership of shared infrastructure to gain an unfair advantage over rivals.
The issue is particularly important because telecommunications towers are commonly shared by multiple mobile network operators. While MTN will become the owner of the infrastructure, competing operators will continue to rely on the towers to provide and expand their services in South Africa.
The regulatory safeguards therefore place limits on the commercial advantage MTN could obtain from owning infrastructure that its competitors also use.
The transaction represents a major step in MTN’s efforts to strengthen its control of telecommunications infrastructure in South Africa, where the company operates one of its most important markets.
For rival operators, continued access to the IHS Towers network will be critical to maintaining their ability to operate and expand without being disadvantaged by MTN’s ownership of the infrastructure.
The conditions imposed by the Competition Commission are consequently central to the approval, balancing MTN’s interest in acquiring the assets with the need to preserve competition within South Africa’s telecommunications market.
