South Africa mobile operator Vodacom on Monday dropped a planned acquisition of local fixed line operator Neotel, citing regulatory complexities.

“It is disappointing that we have reached this conclusion despite all our efforts to find a way to deal with the complexities of the restructured transaction,” said Vodacom Chief Executive Shameel Joosub.

Vodacom, a unit of Britain’s Vodafone, had offered $500 million to Neotel owner, India’s Tata Communications, in 2014 but was forced to rework it after regulators raised anti-trust issues.

South Africa's Vodacom drops Neotel package on regulatory hurdlesBeneath the modified deal, in December announced, Vodacom could have bought assets linked to Neotel’s fixed-line business however, not its frequency spectrum – that your Competition Commission’s said could have provided Vodacom an unfair advantages in rolling out a high-speed 4G network.

South Africa is amid switching its tv transmission to digital from analogue, a move that could release much-needed airwaves as customers more and more use smartphones to see the net and download applications.