The article on IOL Tech may cause further speculation in the market:
Vodacom agrees pay-TV deal with Naspers
"Vodacom has agreed a deal with Naspers's MultiChoice pay-TV unit to distribute a cheaper package of channels, Vodacom said on Sunday.
Transmission will still be via satellite dish into homes, but the two companies hope that Vodacom's marketing prowess will widen the pay-TV market to lower-income households.
South Africa has less than two million pay-TV subscribers out of around 10-million TV sets.
"With 23-million customers in South Africa, Vodacom has the distribution and marketing know-how that could lead to more significant growth in the satellite pay-TV market," Vodacom Chief Executive Alan Knott-Craig said in a statement.
The deal is not linked with the mobile group's Vodacom Live! service that transmits television over cellphones.
Vodacom will offer 16 pay-TV channels for a monthly fee of R139, it said in a statement. MultiChoice DStv charges R440 for 55 TV channels, or R199 for 26 channels.
Vodacom, jointly owned by Telkom and Britain's Vodafone, is South Africa's biggest mobile operator with 21,8-million customers at the end of 2006.
With cellphone penetration high in South Africa, the group is seeking other ways to boost profits.
"With cellphone penetration in South Africa at over 80 percent, Vodacom is constantly looking for opportunities to expand its growth horizontally in the market," Knott-Craig said."