Vodacom's venture capital arm, Vodacom Ventures, has secured its first deal. It has purchased a 10% stake in G-Mobile, the holding company of WiFi operator WirelessG, for an undisclosed amount.
Dot Field, Vodacom's group executive of corporate affairs, says Vodacom Ventures was set up by the cellular network operator to explore and invest in opportunities within the sector.
"Vodacom Ventures is under the management of 'TC' Ralebeitso, who has extensive entrepreneurial experience," she says.
Field says Vodacom Ventures was not involved in the recent deal where the network operator bought a similar size stake in Wireless Business Solutions, the holding company of iBurst.
According to a Vodacom statement, the G-Mobile deal gives Vodacom an effective 26% in G-Mobile Holdings, due to the two separate transaction structures - 10% of which is effective immediately and the remaining 16% to follow in the near future. WirelessG will also soon conclude a black economic empowerment deal, says Vodacom.
Field says the transaction with G-Mobile will expand Vodacom's offerings to its customers and there will probably be further deals of this nature.
The Vodacom statement says it sees WiFi as an ideal complement to its 3G HSDPA mobile broadband services, as it provides an alternative means of connectivity. The seamless access to different network services offered through WirelessG will enable greater flexibility for Vodacom customers and maintain high levels of service performance, it says.
The cellular network operators have all been running tests using WiFi. However, the Independent Communications Authority of SA only issued them with temporary licences and has not yet authorised them to roll-out full commercial services.
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