Naspers plans to auction off its wholly-owned Internet service provider (ISP) business, MWeb.
The decision follows approaches to buy the business by a number of interested parties, the communication giant said in a SENS announcement, published at midday today.
MWeb`s focus to build a wireless broadband network also diverges from Nasper`s core focus on online content platforms, communities and commerce, the multinational media group said.
MWeb is one SA`s largest residential ISPs, with over 350 000 dial-up and broadband customers in both the home and business markets. It also owns the largest VSAT corporate Internet base in sub-Saharan Africa, says Naspers.
To exploit its market leadership position, in a rapidly growing broadband environment, MWeb plans to invest in wireless broadband, it says.
MWeb has already conducted a successful trial using a WiMax broadband network. The trial was shut down when the test period expired in April.
This forced MWeb to wait for the Independent Communications Authority of SA to allocate ECNS licences and WiMax spectrum, before it can continue with its wireless broadband offering.
Wide-ranging
Naspers says the sale of MWeb will leave it without any ISP holdings, anywhere in the world. None of its Internet holdings worldwide have ISP components, it says.
Naspers currently holds Internet investments in 24.com, Tencent, Mail.ru and Gadu-Gadu, the top online communities and communication businesses in SA, China, Russia and Poland, respectively.
It also owns e-commerce platforms in central and Eastern Europe through the recent acquisition of Tradus, it says. In addition, Ibibo, in India; Sanook, in Thailand; and MXit, in SA, continue to grow their online communities, it says.
Naspers did not respond to queries regarding why it chose to auction off MWeb, rather than put it up for sale.
The company says it appointed a financial advisor regarding interests expressed by several potential investors.
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WiMax on hold for MWeb
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