MTN's acquisition of Verizon SA is another example of the company's continued ability to make smart expansion decisions, according to research firm Frost & Sullivan.
In announcing the acquisition earlier today, MTN says it is in line with its strategy to provide integrated communications solutions to all of its markets.
Frost & Sullivan says the addition of Verizon can only boost MTN’s service offering and the value it offers to clients.
"The increasingly converged nature of the telecommunications industry means that market participants have to reposition themselves to provide an offering suitable to changing market requirements," says Frost & Sullivan analyst Lindsey McDonald. "MTN embarked upon a repositioning strategy with the launch of the MTN Network Solutions business that enabled the company to offer networking services to business clients. The company's acquisition of Verizon Business is another step towards the provision of a converged service offering.
“Verizon Business focuses solely on corporate clients and has presence in a number of southern African countries," McDonald adds. "Any purchase of this nature that results in the acquisition of a healthy client base and multi-country presence has become characteristic of MTN.
“Acquiring Verizon Business will allow MTN to provide ISP services to corporate clients bundled with a variety of mobile products and services that were perhaps not previously available to clients," she says. "Given the success of its previous acquisition strategy and the well-established nature of Verizon Business, there is every reason to believe that this acquisition will perpetuate the company's success."