Tata takes control of Neotel

India’s Tata Communications has increased its stake in South Africa’s second fixed-line network operator (SNO) Neotel to 56 per cent after acquiring Eskom and Transnet’s 30 per cent stake.

Neotel has an agreement with mobile operator MTN to jointly build a 5,000 km fibre-optic network across South Africa

“This reaffirms Tata Communications commitment to its expansion and investment plans in the emerging regions of Asia, Africa, and the Middle East,” commented N Srinath, managing director and chief executive of Tata Communications. “We will support Neotel’s efforts to provide global quality telecoms services in South Africa.”

Neotel is a converged communications network operator, providing a range of value-added voice and data services for businesses and wholesale network operators. Neotel has an agreement with South African mobile phone operator MTN to jointly build a 5,000 km fibre-optic network to connect major cities across the country.

Last year the Tata group rebranded its communications business as part of a global expansion strategy, combining VSNL, VSNL International, Teleglobe, Tata Indicom Enterprise Business Unit, and Cipris brands worldwide into a single entity, Tata Communications.