MTN recently announced that it had entered into an agreement with Verizon Business to acquire 100% of Verizon South Africa. The company said that the acquisition was in line with its strategy to provide integrated communications solutions in all of its markets.
Vodacom Business has also recently indicated that it plans price reductions up to 80% of traditional international connectivity which will basically change the current business models of traditional ISPs and network service providers such as Internet Solutions and Verizon Business.
This is good news for connectivity in South Africa. Unlike the fake ADSL hearings that only strengthened Telkom, the new Seacom cable, Neotel and the activities of the Mobile carriers promise to really shake up the telecomminucations industry in South Africa. Keep in mind that the new players are aiming to take market share from IS and Telkom - that is what will make them aggressive players. Once the market has been shared equally, who is to say they will not become a cartel like the bread, cell, car, etc. industries in South Africa.
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