MWeb won't give up on SA

Johannesburg, 08 Feb 2008

While MWeb waits to receive its telecoms licence for its South African operations, the group is seeking opportunities from the rest of the continent.

Its October acquisition of African satellite ISP AFSAT Communications has already proven to be a success, says MWeb CEO Rudi Jansen.

"This is definitely one of the best deals we have ever done. It gives us a large presence across Africa and in most cases, cross-border connectivity. The management team is excellent. Take for instance the unrest in Kenya: within a day we were up-and-running out of Tanzania. We are looking to do more in Africa and further acquisitions are always on the table," he says.

Waiting on ICASA

As for its local operations, Jansen says it is a "real problem" that the country has been unable to liberalise the telecoms environment.

"We're waiting for our licences and hoping that they come through soon. But then we will have to wait for spectrum allocation. So it could be a good 18 months before we can do anything with WiMax, as an example. The thing is, the telecoms environment needs speed; without it we are just allowing incumbents to build strength," he explains.

However, the licensing delays have forced the company to get more creative with its offerings.

Explains Jansen: "We are not giving up on SA; there is a lot more coming from MWeb. For instance, we are working with our sister-company MultiChoice to develop packages that bundle broadband, voice over IP and MultiChoice's PVR offering. This is one of our entries into the converged market where several products are offered, but the customer only needs to deal with one account."

Support from above

Additionally, MWeb's parent company, JSE-listed Naspers, continues to back its efforts, says Jansen.

"Naspers is a wonderful group to work for. Meetings are there for developing stimulating strategy and developing ideas. Then they let you get on with it," he explains.

Jansen has also been in regular contact with Naspers CEO Koos Bekker. Bekker took a two-year sabbatical in 2006 to explore emerging technologies and trends throughout the world. He is due to return to his post in April.

"Bekker and I have spoken fairly often, he's given us some great ideas and I'm sure there will be more when he returns," says Jansen.

As for what he thinks will drive the MWeb SA business in 2008, Jansen says gated communities and new product offerings hold significant opportunities.