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MultiChoice acquires multi-play service provider

MultiChoice South Africa is broadening its core DStv offerings using next generation networks by acquiring a controlling stake in Smart Village, a South African multi-play service provider offering a converged multimedia service to multi-dwelling units, retail and gated communities.

Established in 2004, Smart Village provides a converged services solution to homes and businesses in gated communities, over fibre optic networks, offering:

  • Voice: high quality voice services, including Voice over IP (VoIP) and least cost routing
  • Video: video-on-demand, IPTV and centralised TV distribution
  • Broadband Internet access and
  • Integrated control systems such as security, electricity and water metering, etc

Nolo Letele, CEO of MultiChoice South Africa says “the investment in Smart Village will enable us to create the first true multi-play operator in South Africa, which will offer exciting bundled services to consumers in estates. Our DStv channels and video-on-demand content will add significant value to the Smart Village offering. ”

Increasingly popular

Smart Village is reportedly a leader in its field and the only operator currently able to provide a truly converged services solution via a single access point to gated communities and mixed-use estates, according to MultiChoice. These estates are becoming increasingly popular as South Africans seek secure residential and business premises.

Smart Village currently operates in mixed-use estates in Gauteng, Western Cape and KwaZulu-Natal, with over a thousand homes and businesses already connected. The company has already secured a significant portion of the gated community market and expects accelerated growth following the strategic investment by MultiChoice.

Smart Village's business model requires home and business-owners to pay a basic service fee for converged services, as well as a usage fee for services such as DStv via IPTV, video-on-demand and VoIP. It also offers the option of an estate “intranet” where residents can book golf or other sports facilities, view estate information and events, order fast food and make use of virtual ISP services.

Smart Village offers a turnkey solution for developers, enabling them to deal with a single supplier for media, telecommunications, data and security. The company also offers all the converged services and support that end users will require on a daily basis, tailored for business and residential customers. As a result of the common platform and economies of scale achieved, bundled services can be offered at a discount, compared to what is currently available in the market.

Chris van der Walt, MD of Smart Village, said that the opportunities provided by the new Electronic Communications Act, together with the capital investment made available by Multichoice, would enable the company to grow its service offering.

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