Market Inquiry into the proposed acquisition of ISP operations of Burco Electronic Systems Limited by Telekom Networks Malawi Limited

The Competition and Fair Trading Commission has received an application for authorisation of the acquisition of ISP operations of Burco Electronic Systems (Burco) Limited by Telekom Networks Malawi (TNM) Limited, herein referred to as the Parties.

 TNM is a mobile telephone company registered under the Companies Act Cap 46:03 of the Law of Malawi. The company is listed on the Malawi Stock Exchange and is wholly owned by Malawians. The company offers mobile telecommunication services, mobile internet services, Virtual Private Networks (VPN) services and sells mobile customer equipment such as handsets. The company’s registered offices are at 5th Floor, Livingstone Towers, Glyn Jones Road, Blantyre.

On the other hand, Burco Electronic Systems Limited is also a Malawian company registered under the Companies Act Cap 46:03 of the Laws of Malawi.  The company provides hardware, software, and Internet solutions for business and home users throughout Malawi. Specifically Burco provides internet services, VPN, Ewimax and software support services. Its registered offices have been given as Queen’s Corner, Chipembere Highway, P.O. Box 934, Masalema, Blantyre.

“The proposed transaction will only involve the acquisition of the ISP business operations and related assets of Burco". In accordance with Section 37 of the Competition and Fair Trading Act, the Commission has launched investigations to assess the likely effect of the acquisition on competition in the relevant market. 

In this regard, the Commission is seeking views and comments from Third Parties on developments and operation of this industry, more specifically what prospects are likely to emerge in the light of this transaction. The following are guiding questions though not exhaustive and should not in any way restrict your views on the proposed transaction:

  1. Who are the competitors to Burco Electronic Systems Limited and that of competitors?
  2. What are the market share estimates of Burco and TNM in the business operations where the two companies overlap?
  3. Comment on the ease of entry into this market?
  4. Comment on the levels of imports if any, in this market?
  5. The likelihood that the acquisition would result in the merged parties having dominant market power in this market?
  6. Any comments you may have about the proposed transaction?
  7. Stakeholders are hereby invited to submit their views and comments to the Commission in writing through the following address:

The Executive Director

 

1st Floor Mpikisano House, Plot. No. 4/385

Off Mandala Road

Private Bag 332

Lilongwe

            E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

 The closing date for receiving comments from stakeholders is 3rd December 2014. The Commission may not use information received after this deadline.

Please note that the information provided by stakeholders shall be treated with the strictest confidentiality and will only be used for the purpose of this inquiry.

For further inquiries and clarification, contact Mr Richard Chiputula on Tel: 01 759 506/7 or This email address is being protected from spambots. You need JavaScript enabled to view it. .