MTN CEO Mteto Nyati has told TechCentral that his company won’t subsidise internet service provider Afrihost any longer by selling it data at below cost.
MTN, as you may recall, acquired a 50% controlling stake in Afrihost back in 2014 and has been selling the company data at a loss, but no more, as Nyati says MTN “…cannot afford to do that going forward.”
“That business needs to re-look [at] its positioning. We need to look at what it is Afrihost can offer. It cannot be about lowest price because that’s not sustainable. We need to look at repositioning it into a value space, offering value versus being the lowest priced, ” he added.
Afrihost, meanwhile, is currently testing wholesale data services from alternative suppliers.
When asked if MTN’s decision has affected Afrihost’s network at all, Nyati said “In terms of network quality … it’s not linked to them being associated with us.”[Source – TechCentral]