MTN, Vodacom after Neotel

2013-06-30 10:25
MTN. (Duncan Alfreds, News24)

MTN. (Duncan Alfreds, News24)

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Johannesburg - Speculation is rife that Vodacom and MTN are jostling to buy out Neotel which is understood to be on the block.

According to Sunday Times Business, Neotel denies it is for sale but reliable sources said this week that formal bids to buy out the poorly performing fixed-line operator were due in this week. Sources said watertight non-disclosure clauses are keeping a tight lid on the process.

However, it is believed the two cellphone giants are not the only interested parties and that Dimension Data's Internet Solutions is also keen to buy the company.

Neotel's launch was expected to bring much-needed competition to the fixed-line telecoms market but it has failed to match its high expectations since being launched in 2006.

With only 152 000 consumer clients, Neotel has never gained the traction needed to compete with Telkom.

Read more on:    mtn  |  vodacom  |  neotel  |  mobile

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