Africa Online

ADSL South Africa (Broadband South Africa), 28 January 2007

Kenya-based internet service provider, Africa Online, might become part of Telkom.

Telkom declined to comment but a reliable source made it clear that the telecoms giant ‘was expected to make a bid for Africa Online, which has businesses in eight African countries, next week’ (Source confirms Telkom talks, 23 January 2007).

Why might Telkom be interested in acquiring Africa Online?

Well, it’s no secret that Telkom is hungry for acquisitions in the rest of Africa. Africa Online is an ideal candidate especially if Telkom ‘hopes to exploit untapped demand for internet access in the world’s poorest continent (Source confirms Telkom talks, 23 January 2007).

Although African Online is owned by London-based African Lakes Corporation, Telkom is according to the source ‘only interested in acquiring Africa Online’ (Source confirms Telkom talks, 23 January 2007).

Can Telkom expect competition?

According to African Lake Corporation there’s more than one interested player standing in line.

African Telecoms Company for one is planning ‘to offer £15.50 per share for African Lakes Corporation, which would value it at about £4.2m’ (Source confirms Telkom talks, 23 January 2007).

This means that Telkom will be in for serious competition if it decides to acquire Africa Online.

ADSL South Africa(Broadband South Africa) welcomes Telkom’s drive to expand but hope that common sense will prevail. Meaning that we hope Telkom will stop acting like a leech and start delivering the goods.