http://www.busrep.co.za/index.php?fArticleId=2246079
MWeb's ISP move shifts balance of power
October 1, 2004
The Internet service provider sector has been shaken up with the announcement on Friday that MWeb is changing its service provider from UUNet to Internet Solutions (IS).
MWeb, the largest service provider for the South African home market, had been using UUNet to provide its internet connectivity, but has now signed a three year agreement with IS, a subsidiary of Dimension Data.
The deal was signed on 17 September.
"We are very excited about this contract," said M-Web CEO Kim Reid. "We always had a good relationship with UUNet, but we felt that it would be a better fit with IS."
He said the move to IS would be seamless for MWeb customers.
Internet Solutions CEO Angus MacRobert said it was a very strategic deal to have won: "We've worked on it. It doesn't happen overnight."
He said Internet Solutions has effectively doubled its consumer dial-up service by getting Mweb's contract. It now had 70 percent of the market.
MacRobert said that as well as "shifting the power balance" in the ISP sector, the contract was likely to encourage other customers to use IS.
Reasons given for the move were varied.
Tiscali, which MWeb recently bought for R320 million, already used IS, Reid said. He also said MWeb was wanting to capitalise on IS's expertise in Voice Over Internet Protocol.
The fact that UUNet has been without a local CEO since November last year had also reportedly factored in MWeb's decision to move to IS.
Mweb services around 548 000 customers now that it has purchased Tiscali.
Edwin Thompson, technical and regulatory director at UUNet SA, said: "UUNet SA and M-Web have enjoyed a mutually successful relationship for six years and after extensive review, the businesses have decided on an amicable separation.
"While the nature of this disengagement remains confidential, both UUNet SA and M-Web believe this step is appropriate to ensure the successful positioning of both companies."
MWeb and UUNet have been together since MWeb purchased iAfrica in 1997. - Sapa
MWeb's ISP move shifts balance of power
October 1, 2004
The Internet service provider sector has been shaken up with the announcement on Friday that MWeb is changing its service provider from UUNet to Internet Solutions (IS).
MWeb, the largest service provider for the South African home market, had been using UUNet to provide its internet connectivity, but has now signed a three year agreement with IS, a subsidiary of Dimension Data.
The deal was signed on 17 September.
"We are very excited about this contract," said M-Web CEO Kim Reid. "We always had a good relationship with UUNet, but we felt that it would be a better fit with IS."
He said the move to IS would be seamless for MWeb customers.
Internet Solutions CEO Angus MacRobert said it was a very strategic deal to have won: "We've worked on it. It doesn't happen overnight."
He said Internet Solutions has effectively doubled its consumer dial-up service by getting Mweb's contract. It now had 70 percent of the market.
MacRobert said that as well as "shifting the power balance" in the ISP sector, the contract was likely to encourage other customers to use IS.
Reasons given for the move were varied.
Tiscali, which MWeb recently bought for R320 million, already used IS, Reid said. He also said MWeb was wanting to capitalise on IS's expertise in Voice Over Internet Protocol.
The fact that UUNet has been without a local CEO since November last year had also reportedly factored in MWeb's decision to move to IS.
Mweb services around 548 000 customers now that it has purchased Tiscali.
Edwin Thompson, technical and regulatory director at UUNet SA, said: "UUNet SA and M-Web have enjoyed a mutually successful relationship for six years and after extensive review, the businesses have decided on an amicable separation.
"While the nature of this disengagement remains confidential, both UUNet SA and M-Web believe this step is appropriate to ensure the successful positioning of both companies."
MWeb and UUNet have been together since MWeb purchased iAfrica in 1997. - Sapa
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