According to industry reports, the ongoing public hearings at Icasa regarding the transfer of control of network and spectrum licenses from Cell C to The Prepaid Company (TPC) have sparked confusion over the distinction between ownership and control.
Cell C has clarified that despite the transfer of control to TPC, it will retain ownership of the licenses. The confusion surrounding this issue has prompted discussions about the significance of knowing who controls spectrum licenses, particularly in preventing anticompetitive behaviour.
The application for control transfer was initiated by TPC’s decision to increase its stake in Cell C, which raised concerns from various stakeholders, including Cell C’s empowerment shareholder, CellSAf. There have been assertions that this transfer represents a potential assets stripping by Blue Label Telecoms. However, Cell C has emphasised that the approval of the transfer will not lead to a change in the name of the spectrum license holder or the ownership of spectrum assets, which will continue to be reflected in Cell C’s books.
During the hearings, concerns were raised about the possibility of TPC’s preferential treatment towards Cell C potentially affecting competition in the market. Both MTN and Vodacom expressed apprehensions about the potential impacts of the proposed transfer of control on competition, underscoring the significance of this issue. However, Wim Trengrove SC, representing Cell C, dismissed these concerns, stating that the change in share ownership is marginal and will not result in any practical differences. He also emphasised that the approval by Icasa will not alter how the spectrum used by Cell C is deployed.
The discussions at the hearings have underscored the importance of understanding the distinction between ownership and control of communications licenses, particularly in the context of preventing anticompetitive practices in the telecommunications industry.
