Listed black empowerment technology firm Casey has sold its dial-up subscriber base to M-Web for an undisclosed amount, putting M-Web firmly ahead in the race to acquire dial-up base dominance in SA.
NetActive said last week that it had sold its dial-up subscriber base to M-Web for an expected R40 million, adding about 25 000 users to M-Web`s burgeoning subscriber base.
M-Web announced at the release of its interim results in November that it is committed to growing its subscriber base at the expense of its balance sheet. At that time the subscriber base stood at 177 000, reflecting a 300% growth from the interim period in 1998.
Casey CEO Mahomed Cassim says the company will now focus its energies on growing its Web design and hosting activities and make "a more concerted push into the e-business space".
Casey recently merged its Internet service provider (ISP) division, CaseyNet, with software development arm Casey Software Development, to streamline divisional efficiencies.
"The deal struck recently with M-Web is part-and-parcel of this streamlining strategy," says Cassim.
"We effectively launched our ISP division off the back of dial-up subscribers. However, like many other players in this market, we very quickly realised that the dial-up market is not viable unless you intend becoming a large and significant player, like M-Web.
"However, by initially following the dial-up route we were able to leverage our market position as an ISP to diversify the division into other Internet pursuits, such as Web design, Web hosting and general e-business," he concludes.
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