Net1’s bid to consolidate its position in the mobile telecommunication market, and specifically in distribution of airtime, has received a boost with the Competition Tribunal approving a merger proposal between Net1 Applied Technologies South Africa and DNI-4PL Contracts without conditions.
Net1 is owned by Net1 UEPS Technologies, an American company that is entangled in South Africa’s social grant distribution mess.
In South Africa Net1 provides payment solutions, transaction processing services and financial technology across multiple industries. Net1 sells airtime to Net1’s merchant network which in turn sells airtime to end consumers. These include EasyPay, RMT Systems and Manje Mobile Electronic Payment Services.
DNI is engaged in retail communications and distributions to South Africa’s informal market. Its services include the sale and distribution of prepaid airtime and starter packs.
The tribunal approved the merger without commission after the Competition Commission found that the proposed transaction is unlikely to substantially prevent or lessen competition in any market.