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Big changes at Internet Solutions

Internet Solutions is in partnership discussions with numerous companies, which form part of big changes planned for the company. MyBroadband has learnt from two industry sources that MTN has put in an offer to acquire Internet Solutions. Bloomberg recently reported[1] that MTN is considering an offer of up to £600 million to buy the company.

According to MyBroadband’s sources, the deal with Internet Solutions involves complicated structures – which have scared off certain potential suitors. It is further understood that Internet Solutions is still seen as a valuable asset by its owner Dimension Data, and that the latter is not keen to sell a majority stake in IS. It is therefore not clear whether the full share capital of Internet Solutions is for sale, or whether Dimension Data is looking at different deals.

Dimension Data declined to provide comment on the “market rumours”. MTN said it does not comment on market speculation.

Big changes at Internet Solutions

MyBroadband has also learnt that Internet Solutions has outsourced its wireless network to Comsol, and has put out tenders to do the same with its fixed-line infrastructure. Internet Solutions confirmed this is the case, stating that it forms part of its strategy to limit investment in certain infrastructure assets.

“Internet Solutions has always placed a strong emphasis on infrastructure,” said IS spokesperson Mayur Soni. “The company has advocated for open-access technologies – including infrastructure – as a driver of competition in the market.” Soni said with an abundance of connectivity options now available, Internet Solutions continues being carrier agnostic and will limit investment in certain assets.

“At the same time, we are evolving to become a platform business invested in software-defined services,” said Soni. This resulted in IS outsourcing the microwave portion of its wireless infrastructure to Comsol, and it may enter into similar agreements for its fixed-line infrastructure. According to sources, Internet Solutions is in discussions with multiple companies which it sees as suitable partners.

“Our commitment to ensuring that our clients receive fit-for-purpose, streamlined, managed ICT services remains unchanged,” said Soni.

Now read: Vodacom and MTN interested in Dimension Data Africa[2]

References

  1. ^ Bloomberg recently reported (mybroadband.co.za)
  2. ^ Vodacom and MTN interested in Dimension Data Africa (mybroadband.co.za)

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