MWeb

MWeb is a South African internet service provider whose history is closely associated with the development of consumer internet access in the country. Established in 1997, it was among South Africa's early commercial ISPs and introduced dial-up access through a package known as the Big Black Box. The product was distributed with a copy of Arthur Goldstuck's Hitchhiker's Guide to the Internet, a widely recognized South African technology publication at the time, linking MWeb's early consumer proposition with practical education about using the internet. The company expanded its consumer offering during the 2000s. In 2004 it introduced Polka, a lower-cost ISP proposition. In 2005 MWeb acquired the South African business of Tiscali, an Italian-owned ISP, broadening its position in the local access market. In 2006 it introduced 3G mobile data products by reselling services from two major South African mobile networks. MWeb subsequently became an important broadband competitor, including through its launch of uncapped ADSL in 2010, at a time when broadband usage and demand for larger data allowances were increasing. MWeb also participated in the transition from fixed-line broadband toward wireless and fiber connectivity. In 2014 it brought the Fon WiFi network to South Africa and launched its first fiber-to-the-home packages. These moves extended the brand beyond traditional ADSL and positioned it to serve customers seeking higher-speed or more flexible connectivity. In 2017 MWeb introduced LTE Advanced products through a partnership with Rain, a South African fixed-wireless broadband provider. The business changed shape during the middle of the 2010s. In 2015 it was restructured to concentrate primarily on residential and small-business customers. As part of that repositioning, MWeb sold its MWeb Business and Optinet divisions, together with core network assets, to Internet Solutions, a Dimension Data division. Its physical retail presence was also reduced: the company's five retail stores were closed at the end of March 2016 as sales shifted online. Ownership changed again in 2017. Internet Solutions announced in December 2016 that it had agreed to acquire MWeb from Naspers, subject to approval by South African competition authorities. Approval was announced on 9 May 2017, and the sale became effective on 31 May 2017. MWeb was later owned by Webafrica, another South African ISP, and continued operating nationally from Cape Town. Its brand history reflects the successive development of South African consumer connectivity: dial-up, low-cost access, mobile data, uncapped ADSL, public Wi-Fi, fiber, and LTE-based fixed wireless products.

MWeb was founded in South Africa in 1997 and became one of the country's early internet service providers. Its initial consumer product was dial-up internet delivered through the Big Black Box. The package also included Arthur Goldstuck's Hitchhiker's Guide to the Internet, helping present internet access as a service that ordinary consumers could learn and use rather than solely as a specialist technical facility. The company developed a broader consumer portfolio during the 2000s. In 2004 it launched Polka, a low-cost ISP offering. In 2005 MWeb acquired the South African division of Tiscali, an Italian-owned ISP, strengthening its position in the local market. The following year it introduced 3G mobile data products by reselling capacity from two of South Africa's major mobile networks. These initiatives allowed MWeb to participate in both fixed and mobile forms of internet access. MWeb later became associated with larger broadband allowances and alternative access models. It was the first South African provider to launch uncapped ADSL, in 2010. In 2014 the company introduced the Fon WiFi network to South Africa and launched its first fiber-to-the-home packages. The fiber launch marked a move toward higher-capacity fixed connectivity, while the Fon relationship extended the brand's connectivity proposition into Wi-Fi access. In July 2017, after its ownership transition, MWeb launched LTE Advanced products in partnership with Rain. The business was reshaped in 2015. MWeb concentrated more strongly on residential and small-business customers and sold MWeb Business, Optinet, and core network assets to Internet Solutions, a Dimension Data division. The company also reduced its physical retail footprint. Its five retail stores closed at the end of March 2016, after which sales were conducted online. MWeb's ownership changed during 2017. Internet Solutions announced in December 2016 that it had agreed to buy the company from Naspers, pending competition approval. South African competition authorities approved the transaction on 9 May 2017, and the sale took effect on 31 May. MWeb is identified as a subsidiary of Webafrica and operates nationally from Cape Town. Its development illustrates the evolution of South African ISP services from dial-up packages to ADSL, mobile data, fiber, public Wi-Fi, and LTE-based broadband.

1. 2017Ownership transfer approved and completed

   Competition authorities approve the acquisition by Internet Solutions; the transaction becomes effective on 31 May.

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2. 2017LTE Advanced products launched with Rain

   MWeb introduces LTE Advanced products through a partnership with Rain.

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3. 2016Retail stores close

   MWeb closes its physical retail stores and moves sales online.

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4. 2015Business restructuring and asset divestment

   MWeb refocuses on residential and small-business customers and sells business divisions and core network assets to Internet Solutions.

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5. 2014Fon WiFi and fiber offerings introduced

   MWeb brings the Fon WiFi network to South Africa and launches its first fiber-to-the-home packages.

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6. 2010Uncapped ADSL launches

   MWeb becomes the first provider in South Africa to launch uncapped ADSL.

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7. 20063G mobile data introduced

   MWeb launches 3G mobile data products by reselling services from two major South African mobile networks.

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8. 2005South African Tiscali business acquired

   MWeb acquires the South African division of Tiscali.

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9. 2004Polka launches

   MWeb introduces Polka as a lower-cost ISP offering.

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10. 1997MWeb is founded and launches dial-up access

    MWeb begins operating as an early South African ISP and introduces dial-up internet through the Big Black Box package.

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A South African consumer and small-business internet provider positioned around accessible broadband connectivity and successive adoption of newer access technologies.

• Big Black BoxDial-up internet1997

  MWeb's early dial-up internet package, launched in 1997. It combined internet access with a copy of Arthur Goldstuck's Hitchhiker's Guide to the Internet, making the service both a connectivity product and an introductory consumer resource for navigating the emerging web.

• PolkaLow-cost ISP service2004

  A lower-cost internet service introduced by MWeb in 2004. The offering formed part of the company's effort to broaden access to internet services beyond higher-spending customers.

• Uncapped ADSLFixed broadband2010

  MWeb's uncapped ADSL service, launched in 2010, removed a conventional usage ceiling from the product proposition. It became a notable part of MWeb's broadband positioning as South African consumers sought more extensive home internet use.

• Fiber-to-the-home packagesFiber broadband2014

  MWeb's first home-fiber packages, launched in 2014. They represented the brand's move from legacy ADSL connectivity toward higher-capacity fixed broadband infrastructure.

• LTE Advanced productsFixed-wireless broadband2017

  LTE Advanced connectivity products launched in July 2017 through a partnership with Rain. The range extended MWeb's access portfolio into faster fixed-wireless broadband.

• 2016Move retail sales onlineStrategy

  MWeb operated five physical retail stores while consumer internet sales were increasingly shifting toward digital channels.

  What changed. The company closed its retail stores at the end of March 2016 and moved sales online.

  Aftermath. MWeb ended its physical retail-store model and continued customer acquisition through online channels.

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• 2016Agreement to sell MWeb to Internet SolutionsM&A

  MWeb's then-owner Naspers agreed to sell the ISP to Internet Solutions, subject to approval by South African competition authorities.

  What changed. Internet Solutions entered into an acquisition agreement with Naspers in December 2016.

  Aftermath. The transaction received approval on 9 May 2017 and became effective on 31 May 2017.

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• 2015Refocus on residential and small-business connectivityStrategy

  MWeb reviewed its operating structure as the South African internet market developed across consumer broadband, business services, and network infrastructure.

  What changed. The company concentrated primarily on residential and small-business customers and sold MWeb Business, Optinet, and core network assets to Internet Solutions.

  Aftermath. The change narrowed MWeb's focus toward customer-facing ISP services rather than ownership of the divested business and network assets.

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• 2017South African competition authorities approve MWeb acquisition

  The proposed acquisition of MWeb was approved on 9 May, with the sale becoming effective on 31 May 2017.

  M&ARegulation
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• 2017MWeb launches LTE Advanced products with Rain

  MWeb introduced LTE Advanced products in partnership with Rain, expanding its fixed-wireless broadband offering.

  Product launch
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• 2016MWeb closes its retail stores and moves sales online

  MWeb closed its five retail stores at the end of March and shifted its sales activity to online channels.

  Other
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• 2016Internet Solutions agrees to acquire MWeb from Naspers

  Internet Solutions announced an agreement to acquire MWeb from Naspers, subject to approval by South African competition authorities.

  M&A
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• 2015MWeb restructures around residential and small-business customers

  The company reorganized its business to focus mainly on residential and small-business connectivity and sold its business divisions and core network assets to Internet Solutions.

  Other
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• 2014MWeb launches fiber-to-the-home packages

  MWeb introduced its first fiber-to-the-home packages as part of its expansion beyond ADSL-based broadband.

  Product launch
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1. MWEB