Is Vodacom eying iBurst?
The rumour mill has been hovering around Vodacom as a possible buyer for some time now, with talk that the cellular giant is seriously interested in purchasing iBurst.
The fact that Vodacom CEO Alan Knott-Craig’s son is heading up iBurst is most likely purely coincidental and not really the ground for this rumour.
Apart from a growing broadband user base, iBurst has some other strategic assets that Vodacom may be interested in. These assets include spectrum that can be used for WiMax and various sites around the country that could be of value to Vodacom.
iBurst, who has already been granted access to the 2.6 GHz radio frequency band by ICASA, is looking at using this technology and spectrum to target the lucrative corporate leased line services.
Rumours that Vodacom are interested in iBurst come as no real shock since the cellular providers are all looking at new opportunities in the telecoms arena. iBurst is an attractive package with their spectrum and other assets which could come in very handy to expand Vodacom’s current offerings.
Neology co-founder and telecoms expert Regardt van de Vyver, said that an acquisition of this nature will make sense, especially since iBurst can provide Vodacom with another avenue to expand on its business offerings and target corporate clients.
Vodacom did not want to deny or confirm these rumours, merely saying that: “It would not be prudent for Vodacom to comment on media speculation regarding possible acquisitions and partnerships in this regard.”
Vodacom did however confirm that they are looking at spreading their wings in the telecoms arena.
“Under the newly promulgated Electronic Communications Act, Vodacom – as an active player in the converging communications sector, will continuously investigate and evaluate new opportunities through which to deliver greater value for our customers,” Vodacom said.
iBurst said that they were unable to comment at this stage.
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