Cftc nods to tnm, But with conditions

Competition and Fair Trading Commission (CFTC) has authorised TNM’s acquisition of national fibre network operator—Open Connect Limited (OCL) on condition that it will avoid discriminatory pricing or anti-competitive conduct towards competitors.

This comes months after TNM offered to acquire OCL’s assets which include fiber network, data centre, network equipment, vehicles, and enterprise contracts in a transaction valued at K23.5 billion.

Kaunda: OCL is facing severe financial distress and negative working capital. | Nation

In a statement announcing the decisions made at its 76th meeting that was held on September 30 2026, the commission said after its assessment the proposed merger was authorised but with strict conditions.

Among others, the commission ordered TNM to maintain all OCL employees and maintain the open access and neutrality features of the wholesale fibre network by operating wholesale and retail functions as separate entities with independent board oversight.

Reads part of the statement: “TNM should remain under regulatory surveillance by the commission for three years under a formal Memorandum of Understanding (MoU) to monitor compliance.”

In an interview CFTC chief executive officer Desmond Kaunda acknowledged that merging an upstream wholesale provider with a downstream retail operator risks losing OCL’s neutral open-access framework, and potential misuse of competitors’ traffic data.

However, Kaunda said considering that OCL was in a state of collapse, the integration generates operational efficiencies, lowers distribution costs, and secures needed capital to upgrade failing network infrastructure.

Kaunda said: “The commission found that the most critical public interest consideration is saving a failing firm. OCL is facing severe financial distress and negative working capital.

“The acquisition provides essential recapitalisation, prevents asset collapse, preserves approximately 40 jobs, and supports digital infrastructure development without imposing adverse fiscal burdens on the state.”

The TNM’s bid to buy OCL has drawn mixed reactions from analysts, with some highlighting potential efficiency gains and others cautioning about unclear benefits.

In an interview, capital market analyst and investor Benedict Nkhoma said the transaction’s success will depend on valuation and integration costs.

He noted that CFTC’s review is a safeguard against potential consumer harm through higher prices or reduced choice.

But investment analyst Brian Kampanje said shareholders need more information, arguing that the deal does not appear to deliver economies of scale.

“More information is required to assist the shareholders appreciate the rationale for such acquisition,” he said.

Stockbrokers Malawi equity investment analyst Kondwani Makwakwa described the acquisition as strategic, saying it would strengthen TNM’s control over critical infrastructure, enhance service quality and reduce long-term operating costs.

On his part, Equity Masters Limited board member Purity Chitalo described the move as a standard growth strategy, noting that TNM’s 2017 acquisition of Burco Limited delivered tangible benefits, including new WiFi clients and technical expertise.

OCL operates a national fibre network, providing wholesale capacity to mobile operators.

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