South Africa’s largest mobile operator, Vodacom will invest R1 billion annually in a new high speed fibre-optic cable network, according to a report by Bloomberg.
Vodacom CEO, Shameel Joosub, said that the group would use its pending acquisition of Neotel to ramp up its high-speed fibre-optic cable play.
In April, Vodacom said it had reached an agreement to acquire 100% of the issued share capital in, and shareholder loans against fixed line operator, Neotel, for a total cash consideration of R7 billion.
The deal is still awaiting approval from regulators.
Vodacom is targeting 5,000 businesses by March 2015, and aims to provide mobile, landline, TV and internet packages following a marginal decline in service revenue in its most recent results announcement in July.
According to Bloomberg, Neotel will increase Vodacom’s fibre network to approximately 29,000 kilometers from a current 7,000 kilometers.
“It’s part of a larger quad play,” Joosub said, referring to bundled mobile, TV, phone and Internet services.
“The TV side of it will gain momentum as we get more and more penetration. The Neotel acquisition gives us the ability to accelerate this investment,” Joosub told Bloomberg.
In June, Bloomberg reported that Spotify was in talks with Vodacom to offer its music streaming services in Africa.
Vodafone (which owns 65% of Vodacom) also recently announced as part of its strategy to offer content to its users that it would give UK LTE users a six-month subscription to streaming movies and TV shows on Netflix.
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Source : https://businesstech.co.za/news/mobile/68722/vodacom-reveals-fibre-optic-plans/