Broadband internet. (Duncan Alfreds, Fin24)
Johannesburg - Independent fibre broadband player Vumatel says it has sealed a deal with investment bank Investec.
Vumatel kick-started operations in 2014 when it connected upmarket Johannesburg suburb Parkhurst to high-speed fibre broadband.
Vumatel’s network is open access, which means that customers can choose any internet service provider of their choice.
And since 2014, Vumatel says its network has been expanded to another six suburbs while over 25 residents associations have endorsed the company to lay fibre in their areas.
Investec then has taken a minority share in the fibre provider, according to Vumatel. The extent of the share has not been disclosed.
"This investment provides the business with the ability to connect up to 100 000 homes by 2016 and therefore further entrench Vumatel as the leading FTTH (fibre to the home) player in the market,” said Niel Schoeman, chief executive officer Vumatel, in a statement.
“This investment will allow us to deliver world class connectivity, choice and superior customer service to every community that requests it,” said Schoeman.
Kobus Viljoen of Investec said Vumatel is setting the bar for the local fibre industry.
“Their commitment to creating affordable high speed open access fibrehoods through focus on customer service will have a fundamental impact on the telecommunications industry,” said Viljoen in a statement.
Vumatel’s announcement of the Investec deal has come amid Telkom launching a new spin-off wholesale broadband division dubbed ‘Openserve’.