Open-access fibre telecommunications infrastructure provider DFA (Dark Fibre Africa) has acquired a “significant minority stake” in fibre-to-the-home (FTTH) specialist SA Digital Villages (SADV) for an undisclosed sum.
The transaction will see SADV “re-position itself” as a wholesale open-access FTTH service provider, DFA said in a statement on Tuesday.
SADV was established eight years ago and was one of the first FTTH providers in South Africa.
In terms of the deal, SADV will use DFA’s national fibre footprint to build and extend the reach of its FTTH network.
“SADV will now offer its FTTH network on a wholesale basis to Internet service providers, enabling them to deliver a range of Internet and value-added services to consumers, while at the same time providing consumers with choice and the benefits associated with service-based competition,” DFA said in the statement.
“DFA, through SADV, will focus its efforts in the FTTH market to deliver open-access, high-speed connectivity to our service provider customer base,” said DFA chief strategy officer Reshaad Sha.
Both companies will continue to operate as separate entities, with job roles unaffected.
In the statement, SADV CEO Shaun Barkhuizen said: “The provision of an open-access wholesale solution will address the issue of duplicate fibre deployment … as multiple service providers race to grab the most lucrative areas. Collaboration is the solution to ensure nationwide high-speed connectivity as a utility and not a luxury.” — © 2016 NewsCentral Media