Vodacom Purchase of Neotel Could Face Trade Body Obstruction:

South Africa's Wireless Access Providers' Association (WAPA) says that it would object to any attempt by Vodacom to buy the country's second largest landline operator, Neotel and said it was watching developments carefully before formulating a formal response.

WAPA believes that the acquisition would stifle competition, lead to job cuts, and do little to reduce the digital divide that it believes should be the country's top priority with regard to broadband.

WAPA says that it is seeing an increase in membership exceeding 25% per year, as smaller operators seize the gap created in the broadband market, particularly with respect to last-mile access.

"The growth in smaller operators is good for the customer and good for the country," says Christopher Geerdts, Chairperson of WAPA. "It increases competition, creates jobs and drives rural broadband penetration. Larger operators tend to cut jobs and cherry-pick customers in the most lucrative suburbs and business parks."

WAPA and many of its members have a commercial relationship with Neotel.

"WAPA's concern is that Vodacom's influence will dampen these gains achieved, severely limit open wholesale access and set back rather than increase competition and consumer choice," concludes Geerdts.