Pending approval by the South African competition authorities, the Multichoice-owned Smart Village will find a new home at MTN. The new acquisition will allow MTN to be more aggressive in its roll out of fibre to the home (FTTH) solutions throughout South Africa.
At present, Smart Village owns fibre networks within gated communities that connect 29 000 homes and residential properties in Gauteng, Western Cape and Kwa-Zulu Natal. This existing presence will grant MTN access to sought after estates in Gauteng such as Waterfall, Jackal Creek and Midstream Estates while ultimately growing the MTN FTTH footprint.
Chief executive officer of MTN, Mteto Nyati spoke of the value this deal will have to MTN in a statement saying, “The acquisition of Smart Village provides MTN with the opportunity to cement its market leadership in the FTTH space and to make inroads in the enterprise sector.”
This acquisition comes on the back of MTN expanding its FTTH offering earlier this year to additional suburbs including; Parkmore, Lonehill and Sandhurst in Gauteng, Fresnaye and Bakoven in Western Cape, and La Lucia in Kwa-Zulu Natal.
Nyati went on to say, “The transaction is in line with our strategy of driving sustainable growth through identifying and astutely acting on new opportunities as part of MTN’s delivery of a bold, new digital world to our customers. It lays the firm foundation that allows us to develop our participation in the enterprise adjacent sectors including media and entertainment.”
Customers that are currently signed with Smart Village will still need to deal with Multichoice until the deal with MTN is finalised.