Powerline communication company Goal Technology Solutions (GTS) says it is on track to develop a large footprint within the Southern African residential market, following its sale of an 80% stake to Safika Holdings.
GTS CEO Adrian Maguire says the deal, concluded at the end of last month, facilitates the company's vision to deploy a nationwide broadband network that would provide tripe-play services to residential customers.
Maguire explains that GTS is looking to conclude deals with municipalities across the country to bring broadband access across powerlines to the residential market, through a combination of fibre and cable.
The company has already deployed a network in Heidelberg and also has an agreement in place with the Nelspruit municipality, where it is about to roll out infrastructure.
The company is also targeting individual gated communities and new residential developments, but its main thrust is to conclude deals with municipalities.
"We are tendering for the Joburg Broadband Network Project, and are also looking at Tshwane and Richards Bay, at the moment. Thus far, we have had a positive response from municipalities, as there is no capital outlay on their part," says Maguire.
Since the beginning of the year, the company's network has expanded by 500% and its customer base has surged by 300%, but Maguire would not reveal actual figures during a previous interview.
Better fit
"We want to establish a good foundation for a major footprint in the Southern African residential market."
GTS was established in 2004, as part of the international Mikcor Group, led by the late "father of African telecoms", Miko Rwayitare, who owned the controlling stake in the company and served as chairman.
Following Rwayitare's death in September last year, GTS sought to unload his 80% stake to a major player in the telecoms market, and had even drawn up a draft shareholders' agreement with Telkom.
However, Maguire explains that black-owned investment group Safika Holdings emerged as a better fit. He would not comment on the financial value of the transaction, but says GTS is "happy" with the deal.
"They provide us with the financial backing and the BEE status that we need to expand our business." GTS has a 65% BEE shareholding following the transaction.
Standard Bank recently bought 20% of Safika Holdings, which has interests in the ICT, financial and resources sectors, among others.
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