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Commission clears way for IS, MWeb deal

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 11 Dec 2014
Internet Solutions makes progress in buying the bulk of MWeb.
Internet Solutions makes progress in buying the bulk of MWeb.

The Competition Commission has recommended that Dimension Data unit Internet Solutions (IS) be allowed to take over three MWeb units.

In September this year, Dimension Data (DiData) said IS will buy MWeb's core network assets, MWeb Business and Optinet, although MWeb Connect will retain its consumer ISP business and MWeb's WiFi business does not form part of this agreement.

At the same time, it unveiled a new company, WirelessCo, which will build and operate an open access carrier-grade WiFi network. WirelessCo will be 51% owned by Dimension Data, with MultiChoice holding the balance.

WirelessCo will be headquartered in Johannesburg and combine the WiFi network assets of DiData-owned WiFi provider AlwaysOn, together with the WiFi assets of MWeb WiFi. The AlwaysOn retail consumer business will continue to operate as a separate entity, as will MWeb Consumer, which would use IS's backbone.

As part of the deal, the commission says, because there are public interest concerns, no more than 35 employees of the merged entity should be retrenched because of the deal. DiData has already stated: "Employees of MWeb WiFi, as well as AlwaysOn employees who manage the AlwaysOn network, will be employed by WirelessCo."

No reasons were provided for the commission's approval.

The commission noted DiData operates through a variety of subsidiaries and divisions that specialise in IT and communication services, while MWeb sells products and services in the categories including internet connectivity, hosting services, cloud services, security, voice-over-IP and e-mail services.

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