Cape Town - MWEB Business is for sale, the company announced in a brief statement.
On Monday, the company announced that its Business division was being sold to Internet Solutions (IS) subject to approval by the Competition Commission.
MWEB said that in addition to MWEB Business, its network support division Optinet would also be sold to IS.
"We will retain our consumer ISP, MWEB Connect, and to this end there will be absolutely no change to your current service", Derek Hershaw, MWEB ISP CEO wrote to subscribers in a short note.
The deal is symptomatic of consolidation in the industry and rumours have been swirling that junior mobile operators Cell C or Telkom Mobile might be targets of a takeover.
ADSL services
Vodacom in late 2013 announced a takeover bid for Neotel as the company looks to launch a comprehensive fibre to the home service.
MWEB said that the deal would allow it to focus on consumers.
"Going forward, this deal will allow us to extract greater benefits and efficiencies by combining our underlying technology platforms with IS. At the same time we will be able to focus more closely on our consumer ISP, and ensure that we continue to offer you the kinds of online products and services so essential to your everyday lives", said Hershaw.
MWEB was the first company to introduce uncapped broadband in SA and the company has been a consistent campaigner for lower data costs.
However, some have raised questions about the viability of cable broadband that ultimately relies on Telkom's infrastructure.
There are six million copper cable connections possible for broadband in SA, but only around 800 000 currently subscribe to ADSL services.
Broadband policy
Part of the reason that has been cited is the cost of the bundled service from the operator.
"Telkom should be split into two companies, one should be an infrastructure company that provides broadband and fixed line infrastructure to direct to consumer ISPs and telcos, this company should be prohibited from dealing with end consumers", Fontera Digital Works CEO Simon Leps told Fin24 recently.
The government has a target of 100% broadband by 2020, and the Draft National Broadband policy has identified Telkom as a key link in the chain.
"Although a large number of internet service providers can provide internet services over ADSL, their ability to differentiate their offerings and service levels is limited by that fact that there are only three points of interconnect on the Telkom network, which effectively makes them entirely dependent on Telkom for domestic networking", the document says.
MWEB did not reveal the financial implications of the sale.
* Fin24 is part of 24.com, a subsidiary of Media24, which is in the Naspers stable. MWEB is a subsidiary of Naspers.
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