Telecoms giant Telkom SA needs the approval of the country's telecommunications regulator to dispose of its Vodacom shares, the Council of the Independent Communications Authority of SA (Icasa) said on Friday.

"Icasa met this (Friday) morning to consider the matter pertaining to the Vodacom- Vodafone transaction.

Icasa said that in April 2009, it had decided that the Vodacom-Vodafone transaction did not require its prior approval.

"The Authority took its decision in light of the provisions of the existing regulations in respect of the limitation of ownership and control of 2003."

Icasa noted that in early May 2009, the Congress of SA Trade Unions (Cosatu) filed court papers asking for Icasa's decision to be set aside.

"Whereas the Authority awaits the court outcome on its decision, it is concerned that the court proceedings will only commence long after the transaction has taken place."

Icasa added that it believed a transaction of this nature should take place in an environment conducive to regulatory certainty.

The regulatory body said that after careful consideration, it had decided to rescind its previous decision.

"In the interest of transparency, the authority finds it appropriate that a public process be followed to allow all interested parties to be heard," Icasa said.

It added that public hearings would take place by mid-June 2009.

Telkom confirmed to Sapa that it had received Icasa's notification and said it had no comment to make.

Vodacom could not comment immediately.

Sapa