-
Join the MyBroadband community
South Africa’s biggest forum. Discuss, discover, and connect with thousands of members.
-
Question of the Day: Have you ever been to an airshow?
MTN buys Verizon Business
- Thread starter rpm
- Start date
-
- Tags
- mtn verizon verizon business
ToxicBunny
Oi! Leave me out of this...
*blink*
That was a bit unexpected wasn't it?
That was a bit unexpected wasn't it?
RVFmal
Expert Member
- Joined
- Oct 27, 2004
- Messages
- 2,172
- Reaction score
- 214
The other side of the coin is that the stronger they get, the weaker the smaller players in the market and means less competition.
ShaunSA
Derailment Squad
I imagine the objections are being prepared already
Abe
Expert Member
I don't like this. MTN and VC already have enough to cut rates but chose not to so they can make crazy profits. They are just doing this to remove a competitor from the market.
Deckert
Well-Known Member
I suspect that it is the MTN group that is buying Verizon and that ultimate direct control of the Verizon business will fall under MTN-NS, which is a pretty decent ISP considering their heritage.
--deckert
--deckert
Email to competition commission
The following email was send to the competition commission with regards to an official complaint that is still being investigated.
MTN has confirmed that it will acquire 100% of Verizon South Africa
Through a SENS report today MTN shareholders were advised that MTN has entered into an agreement with Verizon Business, part of US based Verizon Communications Inc., to acquire 100% of Verizon Business South Africa.
Verizon Business corporate entities currently own approximately 70% of Verizon Business South Africa with the balance held by an entity controlled by Jay & Jayendra, which is part of the J&J Group.
Verizon Business South Africa is an established South Africa headquartered Internet Service Provider providing full connectivity services to corporate customers in South Africa, Namibia, Botswana, Zambia and Kenya.
According to MTN the transaction is in line with its stated strategy to provide integrated communications solutions in all of its markets and follows similar acquisitions by MTN subsidiaries in Nigeria, Cameroon, Cyprus and Cote d'Ivoire.
Phuthuma Nhleko, MTN Group President and CEO, says: “We are pleased to announce this strategic acquisition, which will enhance MTN’s product offering to meet the diverse requirements of our customers. The acquisition will also provide MTN with access to a significant pool of skilled professionals. Verizon Business South Africa, with its strong track record of providing advanced communications and information technology solutions to enterprise and government customers, is a natural fit to enhance MTN’s existing corporate offerings not only in South Africa but across the region.”
John Doherty, Vice President Strategy and Finance, Verizon Business, says: “We continue to refine our local market approach to supporting the needs of multinational corporations worldwide, which we achieve through either wholly-owned network assets and infrastructure or strategic alliances in key markets. Effectively, this transaction is about focusing each company’s operations to better serve its core customers’ needs. MTN’s strong focus on the African region will, we believe, provide effective service to customers based locally; we also look forward to continuing to work with MTN to support the local needs of our multinational customers.”
Tim Lowry, MTN SA Managing Director and Vice President: South and East Africa Region, comments: “There are already a number of strong competitors in this sector with demand still on the increase for high quality communication connectivity. We are confident that this acquisition will provide customers across our regional footprint with a better choice of ISP services.”
Closing of the transaction is subject to regulatory and competition commission clearances.
I don't think that it would be a wise idea to give Competition Commission clearance while there is still a case pending and under investigation against Verizon Business SA, would it?
It would however be in our favor if MTN acquire Verizon Business SA because the market share will increase and that is what we want, isn't it?
I am definitively going to have a field day to blow this case as wide as possible.
The following email was send to the competition commission with regards to an official complaint that is still being investigated.
MTN has confirmed that it will acquire 100% of Verizon South Africa
Through a SENS report today MTN shareholders were advised that MTN has entered into an agreement with Verizon Business, part of US based Verizon Communications Inc., to acquire 100% of Verizon Business South Africa.
Verizon Business corporate entities currently own approximately 70% of Verizon Business South Africa with the balance held by an entity controlled by Jay & Jayendra, which is part of the J&J Group.
Verizon Business South Africa is an established South Africa headquartered Internet Service Provider providing full connectivity services to corporate customers in South Africa, Namibia, Botswana, Zambia and Kenya.
According to MTN the transaction is in line with its stated strategy to provide integrated communications solutions in all of its markets and follows similar acquisitions by MTN subsidiaries in Nigeria, Cameroon, Cyprus and Cote d'Ivoire.
Phuthuma Nhleko, MTN Group President and CEO, says: “We are pleased to announce this strategic acquisition, which will enhance MTN’s product offering to meet the diverse requirements of our customers. The acquisition will also provide MTN with access to a significant pool of skilled professionals. Verizon Business South Africa, with its strong track record of providing advanced communications and information technology solutions to enterprise and government customers, is a natural fit to enhance MTN’s existing corporate offerings not only in South Africa but across the region.”
John Doherty, Vice President Strategy and Finance, Verizon Business, says: “We continue to refine our local market approach to supporting the needs of multinational corporations worldwide, which we achieve through either wholly-owned network assets and infrastructure or strategic alliances in key markets. Effectively, this transaction is about focusing each company’s operations to better serve its core customers’ needs. MTN’s strong focus on the African region will, we believe, provide effective service to customers based locally; we also look forward to continuing to work with MTN to support the local needs of our multinational customers.”
Tim Lowry, MTN SA Managing Director and Vice President: South and East Africa Region, comments: “There are already a number of strong competitors in this sector with demand still on the increase for high quality communication connectivity. We are confident that this acquisition will provide customers across our regional footprint with a better choice of ISP services.”
Closing of the transaction is subject to regulatory and competition commission clearances.
I don't think that it would be a wise idea to give Competition Commission clearance while there is still a case pending and under investigation against Verizon Business SA, would it?
It would however be in our favor if MTN acquire Verizon Business SA because the market share will increase and that is what we want, isn't it?
I am definitively going to have a field day to blow this case as wide as possible.
Cost of bandwidth
Verizon Business SA exploited the SA customers with crazy prices that is far above the still crazy SA cost of bandwidth.
For example, for 2000GB of bandwidth
International = R2100.00 (Server include 2000GB free bandwidth)
A Verizon CLIENT = R3495 plus (2000GB - 20GB free) 1980GB of bandwidth at R0.09 per MB = R178.200 = Total R181 695.00
Verizon itself = (2000GB - 20GB free) 1980GB of bandwidth at R0.20 per MB = R396 000 PLUS cost of server = OVER R396 000
I have no doubt that Verizon Business decided they abused the SA customers long enough and that the case against them under investigation by the Compitition Commission can cost them dearly and that is why they decided to rather sell before the ship went down on them.
Verizon Business SA exploited the SA customers with crazy prices that is far above the still crazy SA cost of bandwidth.
For example, for 2000GB of bandwidth
International = R2100.00 (Server include 2000GB free bandwidth)
A Verizon CLIENT = R3495 plus (2000GB - 20GB free) 1980GB of bandwidth at R0.09 per MB = R178.200 = Total R181 695.00
Verizon itself = (2000GB - 20GB free) 1980GB of bandwidth at R0.20 per MB = R396 000 PLUS cost of server = OVER R396 000
I have no doubt that Verizon Business decided they abused the SA customers long enough and that the case against them under investigation by the Compitition Commission can cost them dearly and that is why they decided to rather sell before the ship went down on them.