Convergence Wireless Networks has bought a 35% stake in a Tanzanian wireless connectivity provider for an undisclosed amount.
Convergence Wireless is a joint venture between Convergence Partners and Comsol Wireless Solutions. It has acquired a share of WIA Company, a Tanzanian wireless connectivity provider focused on the enterprise market segment.
The company will be actively involved in its new acquisition and will provide high-level support at a strategic and operational level. It will also facilitate access to resources across the wider Convergence Partners network, to accelerate WIA's progress into a fully-fledged converged communications solutions provider.
Comsol will act as WIA's technology partner, and will provide knowledge and expertise in the deployment of wireless broadband networks.
Arif Hussain, Convergence Wireless executive, explains that Tanzania is a growing economy, and has a stable political environment. He says the country has yet to benefit from the Internet, and concepts such as viewing video online are alien to the population.
“Tanzania is one of the fastest growing economies in East Africa, contrasted by one of the lowest levels of Internet penetration standing at 1.3% compared to the African average of 6.7%,” Hussain says.
Investment growth
Convergence Wireless has a 12.5% stake in the East African undersea cable, Seacom, and the company aims to leverage this by moving the connectivity inland, Hussain says. He adds that the only broadband East African countries such as Tanzania have access to is through satellite.
Hussain says the company is focused on investments, and wants to leverage its various investments and partnerships, such as with Dimension Data in Mozambique, to add value to its investments. “We see opportunities in the different parts of the value chain.”
Convergence Wireless has a joint 68.5% stake in Mozambique's INTRA Lda together with Internet Solutions. INTRA Lda is an enterprise-facing wireless broadband access provider with licensed spectrum in the WiMax band.
Hussain explains that Convergence Wireless is also looking into similar opportunities in other East African countries that have access to Seacom. It is also looking to the west coast, which will soon get its own undersea cable.
Convergence Wireless also wants to take Seacom connectivity inland, and is examining opportunities in Uganda, Zambia and Zimbabwe, when that country has a stable investment environment.
“This is yet another major step in our effort to build a portfolio of investments into wireless broadband network operators across the southern and eastern African region, and we will continue to leverage synergies across our portfolio of investments to drive the development of connectivity on the continent,” adds Hussain.
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