MTN has concluded a deal with MultiChoice to acquire Smart Village, which will accelerate the mobile operator's fibre to the home (FTTH) strategy. The transaction is subject to approval by the South African competition authorities Smart Village is a wholly owned subsidiary of MultiChoice that owns fibre networks in gated communities. Its grid passes 29,000 residential homes and stands in Gauteng, the Western Cape and Kwa-Zulu Natal.
The acquisition will give MTN a presence in more gated estates and apartment blocks, business parks and shopping malls. MTN's FTTH footprint will also include the flagship and most sought-after estates of Waterfall, Jackal Creek, Xanadu Eco-Estate and Midstream Estates. MultiChoice will continue to look after existing Smart Village customers until the deal is ratified.
The firm's CEO Mteto Nyati said the acquisition of Smart Village provides MTN with the opportunity to cement its market leadership in the FTTH sector and to make inroads into the enterprise sector. It will give MTN Business the ability to provide wholesale access to 4,228 enterprises passed by Smart Village, while ensuring substantial savings, as traffic will be routed via MTN's backhaul infrastructure.