MTN announced on Monday it has concluded a deal with MultiChoice to acquire Smart Village, which it hopes will accelerate its fibre to the home (FTTH) strategy to be the provider of choice for high speed fibre network across South Africa.
The deal is subject to approval by the South African competition authorities.
Smart Village is a wholly owned subsidiary of MultiChoice that owns fibre networks in gated communities. Its expansive fibre network passes 29 000 residential homes and stands in Gauteng, the Western Cape and Kwa-Zulu Natal.
The acquisition will give MTN presence in more gated estates and apartment blocks, business parks and shopping malls. MTN’s FTTH footprint will also include the flagship and most-sought after estates of Waterfall, Jackal Creek, Xanadu Eco-Estate and Midstream Estates.
“In the enterprise space, the deal will give MTN Business the ability to provide wholesale access to 4,228 enterprises passed by Smart Village, while ensuring substantial savings for MTN and its customers as traffic will be routed via MTN’s backhaul infrastructure,” says Mteto Nyati, CEO of MTN South Africa.
In terms of the deal, MultiChoice will continue to look after existing Smart Village customers until the deal is ratified.
In the last few months, MTN has ramped up its rollout of its FTTH network, and has expanded its fibre network footprint to the suburbs of Parkmore, Lonehill and Sandhurst in Gauteng, Fresnaye and Bakoven in Western Cape and La Lucia in Kwa-Zulu Natal.