MTN will no longer sell data to Afrihost at below cost

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MTN CEO Mteto Nyati has told TechCentral that his company won’t subsidise internet service provider Afrihost any longer by selling it data at below cost.

MTN, as you may recall, acquired a 50% controlling stake in Afrihost back in 2014 and has been selling the company data at a loss, but no more, as Nyati says MTN “…cannot afford to do that going forward.”

“That business needs to re-look [at] its positioning. We need to look at what it is Afrihost can offer. It cannot be about lowest price because that’s not sustainable. We need to look at repositioning it into a value space, offering value versus being the lowest priced, ” he added.

Afrihost, meanwhile, is currently testing wholesale data services from alternative suppliers.

When asked if MTN’s decision has affected Afrihost’s network at all, Nyati said “In terms of network quality … it’s not linked to them being associated with us.”

[Source – TechCentral]

Deon du Plessis

Deon du Plessis

Deon got his first taste of PC gaming at the tender age of 11 when his father bought an 8088 XT, ostensibly to "help him with his homework". Instead, it introduced him to Leisure Suit Larry, King Graham, Sonny Bonds and many more, and Deon has been a PC gamer and hardware enthusiast ever since. He landed his first professional writing gig in 2006 at a prestigious local PC magazine, a very happy happenstance as he got to write for a living about things he loves - tech, PCs, gaming, and everything in between. He's been writing about it all ever since, and loves every minute of it.