There is an interesting development taking place in the broadband internet space. Vodacom has revealed its plans to acquire broadband company Neotel, from India’s Tata Communications. This is view to expand its fibre network.
According to Vodacom Group CEO, Shameel Joosub, the proposed R7bn acquisition will allow Johannesburg-based Vodacom, the country’s biggest mobile service provider, to add about one million high-speed fibre broadband lines in three years.
Despite vehement opposition from competitors Telkom and MTN, Vodacom is confident of getting then decisive endorsement from the regulators, Independent Communications Authority of South Africa (ICASA).
Joosub told an online business publication: “If the transaction is approved, we will then give renewed guidance with Neotel included, which will obviously be improved.”
Vodacom is optimistic that, with Neotel in the bag – of course with ICASA’s blessing – its financial position will significantly improve in the coming financial year. The main question in the minds of increasingly cynical subscribers is whether the development will lead to cheaper internet.
