Dimension Data announced recently that they are planning to launch a new Wi-Fi company, WirelessCo, which will build and operate an open access carrier grade Wi-Fi network.
WirelessCo, which will be headquartered in Johannesburg, will be 51% owned by Dimension Data and 49% owned by MultiChoice. The company is hoping to combine the Wi-Fi network assets of Dimension Data owned Wi-Fi provider AlwaysOn, and MWeb’s Wi-Fi assets. The deal is still subject to approval by the competition commission.
Under the deal, the AlwaysOn’s retail consumer business will continue to operate as a separate entity but employees of MWeb Wi-Fi, as well as AlwaysOn employees who manage the network, will be employed by WirelessCo.
“A ubiquitous Wi-Fi network for South Africa, built by WirelessCo, will be a step forward to a Wi-Fi first service as a viable and cost effective alternative to traditional data communication in a mobile environment,” said Derek Wilcocks, CEO, Dimension Data Middle East and Africa.
“This network will enable more South Africans with affordable Internet access. This company is committed to making the necessary investments to ensure Wi-Fi is available everywhere and to everyone, driving digital inclusion for all of the country,” he said.
At the same time Internet Solutions, a division of Dimension Data, has announced that it has signed a transaction agreement to purchase MWeb Business, as well as their ISP core network assets, and Optinet.
“MWeb Business and Internet Solutions will be able to service this market segment more competitively and ensure that the ICT offerings for this sector are designed and supported in a way that is economically viable and, importantly, support them in operating and growing their business,” said Wilcocks.
“There is a strong strategic and cultural fit between MWeb Business and Internet Solutions and the combined entities will have the scale to compete in the SME market, whilst the SME market will benefit from access to a wider range of services, more market competitive prices, and greater support for their ICT.”