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MWEB sale a signal of change

The announcement last week that Naspers has put MWEB up for auction created a stir of surprise, but not shock. Arthur Goldstuck looks at the implications

 

Is the decision by Naspers to sell MWEB a vote of no confidence in the Internet? Hardly. If anything, it declares the opposite: a recognition that the Internet has become so pervasive, its best businesses will be built on what people do on the network, rather than on how people connect to it.

While it may not be a good thing for MWEB, it is probably a necessary thing as MWEB evolves from an ISP into a telecommunications company. MWEB is entering a new era in South African telecommunications and has little choice but to become an infrastructure owner – once the regulatory environment allows it. Naspers is traditionally in the content space, and has avoided owning the plumbing that makes it all work. It will be a painful divorce, but good for the kids.




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The Big Change is a business strategy blog and newsletter published by Arthur Goldstuck, managing director of World Wide Worx, a leading technology research organisation based in Johannesburg, South Africa.

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