Vumatel hoping to increase Herotel stake to 100%

Jan

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Vumatel wants to buy 100% of Herotel

Community Investment Ventures Holdings (CIVH), Vumatel's holding company, wants to increase its share in Herotel from 48% to 100% to help it reach "secondary" cities.

Vumatel acquired a 45% stake in Herotel in February 2022.
 
I support Vuma on this one they're innovative so this deal could increase competition in secondary towns, who knows maybe Openserv will roll out it's own low cost Ariel fibre because they already have poles there
 
I support Vuma on this one they're innovative so this deal could increase competition in secondary towns, who knows maybe Openserv will roll out it's own low cost Ariel fibre because they already have poles there
How are they increasing competition by acquiring their competitor?
 
How are they increasing competition by acquiring their competitor?
Openserv don't compete much with herotel because firstly Herotel is one man show "closed network" they don't have huge capital, they don't finish roll outs in time example in Mahikeng Fibre is not yet lit but infrastructure is there, such service can affect uptake or investment outlook.
If Openserv notice this unconnected neighborhoods in secondary towns have serious uptake they will start to rethink their strategy because Openserv already has Fibre backbone in this towns
 
Herotel fibre pole (the shorter one) in Sedgefield (9 months ago).
Within a month Openserve had erected their own fibre on their own pole right next to it. So far, Openserve only serve about 10 suburban blocks in Sedgefield. They have plenty of poles, they just stopped the rollout about a year ago. No idea why.
Herotel by now pretty much have most of the town covered.



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Openserv don't compete much with herotel because firstly Herotel is one man show "closed network" they don't have huge capital, they don't finish roll outs in time example in Mahikeng Fibre is not yet lit but infrastructure is there, such service can affect uptake or investment outlook.
If Openserv notice this unconnected neighborhoods in secondary towns have serious uptake they will start to rethink their strategy because Openserv already has Fibre backbone in this towns
I still don't see the incentive for Openserv to suddenly now recognise this market unless you know for certain that Openserve had existing plans to deploy which may or may not be accelerated but could be abandoned now altogether.
 
I still don't see the incentive for Openserv to suddenly now recognise this market unless you know for certain that Openserve had existing plans to deploy which may or may not be accelerated but could be abandoned now altogether.
Remember new strategy from them "fibre on demand" this is their way of rolling out FTTH across SA without using "the list"
 
Remember new strategy from them "fibre on demand" this is their way of rolling out FTTH across SA without using "the list"
I wouldn't hold my breath except in locations where there is mass uptake of existing DSL services.
 
How are they increasing competition by acquiring their competitor?
Herotel is not a competitor to Vuma because they have 0% overlap in networks and/or current roll-out plans. It enhances competition because it will provide economies of scale and capital to HeroTel. Scale creates efficiencies for Vuma as well.

The more capital, the more fibre.

Just the other day I saw somebody complaining that Vumatel is ignoring small towns. This will obviously will change that.
 
Herotel is not a competitor to Vuma because they have 0% overlap in networks and/or current roll-out plans. It enhances competition because it will provide economies of scale and capital to HeroTel. Scale creates efficiencies for Vuma as well.

The more capital, the more fibre.

Just the other day I saw somebody complaining that Vumatel is ignoring small towns. This will obviously will change that.
So you think Vumatel will compete with Herotel in the same market they're now "reaching" ?
 
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