MTN SA Paid R220 million to Buy Smart Village

MTN said fibre-to-the-home (FTTH) connections remain a priority with about 13 000 homes passed for the period.

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MTN Business
MTN Business logo (Photo Credit: MTN Business)

by Gugu Lourie

As part of its push into providing fast Internet to its consumers MTN South Africa, the country’s second-biggest mobile phone has paid R220 million to buy Smart Village.

The company was bought from Multichoice, a subsidiary of Africa’s biggest tech group Naspers.

“In November 2016,  the group acquired 100% of the share capital of Smart Village for a cash consideration of R220 million and a deferred consideration of R12 million,” MTN informed investors on Thursday.

The Smart Village acquisition was completed in December 2016, adding 22 000 homes passed with fibre to the network with about 7 000 homes connected.

MTN said fibre-to-the-home (FTTH) connections remain a priority with about 13 000 homes passed for the period.

MTN anticipate that Smart Village will accelerate its FTTH strategy to be the provider of choice for high-speed fibre network across South Africa.

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.

It will bolster MTN’s presence in the enterprise space by giving MTN Business the ability to provide wholesale access.

Smart Village has an expansive fibre network in Gauteng, the Western Cape and Kwa-Zulu Natal.

 

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A lover of technology, entrepreneurship and urban places by nature. An award-winning financial writer. He has pieced together an intrepid living writing online, working as a technology blogger and writer, even publishing stories on the Internet of Things (IoT)). A former Southern Africa Correspondent for Thomson Reuters news agency.
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