Vodacom may be in trouble over Government contracts

We’ll present to the Competition Commission in a transparent way… We have nothing to hide.

Shameel Joosub, Vodacom

The Competition Commission is investigating Vodacom for “abuse of dominance”.

The company clinched an exclusive contract with National Treasury to be the provider of mobile telecommunication services to Government.

There are 20 Government departments bound by the new Vodacom contract, according to the Commission.

It says it has reasonable grounds to suspect the exclusive contracts may constitute exclusionary abuse of dominance by Vodacom.

The commission says it believes the contract will lead to a loss of market share for other network operators.

The Money Show’s Bruce Whitfield interviewed Vodacom Group CEO Shameel Joosub.

Listen to the interview in the audio below (and/or scroll down for more quotes from it).

The deal was done last year in August and September.

Shameel Joosub, Vodacom

From my understanding; departments have the option to opt in.

Shameel Joosub, Vodacom

There was an open tender process.

Shameel Joosub, Vodacom

We put our best foot forward.

Shameel Joosub, Vodacom

The value of the deal is about R5 billion.

Shameel Joosub, Vodacom

We have to make a profit on the contracts so we can continue to invest.

Shameel Joosub, Vodacom

I think it was done completely fairly… it was a fiercely contested process…

Shameel Joosub, Vodacom

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