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Reports this morning suggest that Vodacom may soon make a move to acquire Neotel.

According to Bloomberg, a person close to the negotiations says the purchase price would be upward of R5-billion.

Neotel, which holds the second network operator licence, is majority owned by the Tata Group of India, through VSNL and Tata Africa Holdings. Nexus Connection is the company’s BEE equity partner. It also has an Africa-wide relationship with the Communitel consortium.

The company is a converged telecommunications network operator, offering voice, data and Internet over a single connection.