Merge X Empowers South Africa’s Niche ISPs to Compete with Industry Giants
A Game-Changing platform to Unlock the Potential of Local Internet Service Providers.
Cape Town, 28 November 2023 – Merge X, positioned to enhance competitiveness for niche ISPs in the ICT industry, creates a shared services backend to address challenges like limited capital and skills. This empowers smaller ISPs to effectively compete against Tier 1 and 2 counterparts. With ICASA’s March 2024 deadline mandating 30% ownership equity for black South Africans and Highly Disadvantaged Groups, Merge X ensures sustainability and growth for businesses, levelling the playing field and advancing the economy.
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Farhad Suleman and Tholo Lerotholi, co-founders of Merge X
In the global landscape, industry consolidation is making waves. Washington DC-based private equity firm Friedman Capital is actively pursuing the goal of merging ten to 20 small-scale fibre/fixed wireless ISPs, creating a formidable fixed broadband provider capable of competing in rapidly growing areas. Meanwhile, in the UK, the broadband sector faces an imminent wave of consolidation. The Internet Services Providers’ Association (ISPA) warns that the plethora of alternative network providers has become unsustainable. With billions invested in full fibre networks, the UK now stands at a critical juncture, as investors anticipate and brace for a period of consolidation to reshape the market.
Tholo Lerotholi, co-founder of Merge X, says, “This is long overdue. Merge X represents a pivotal moment for South Africa’s ISP industry. Gone are the days where price is the only differentiator. Because we understand this, we believe in the transformative power of collaboration, where shared resources and expertise propel niche ISPs into a new era of competition. Our vision is bigger than commerce; it’s about empowering local businesses, solving real problems, and ensuring that no one is left behind in the digital revolution.”
Well into its initial round of capital raising, Merge X is setting the stage for a significant industry consolidation and reshaping the future of South Africa’s ISP landscape to be more inclusive. The momentum is building, and the opportunity for investors and smaller ISPs to be part of this transformative journey is now.
Lerotholi concludes: “Merge X is a cheeky solution to challenging the bigger boys and their unimaginative methods. A testament to strength in numbers, together, we are building a connected South Africa. This is our best shot at responding to government mandates for transformation in the industry – through value creation and meaningful participation and not through window dressing. We do not have the luxury of relying on our brand name to succeed, we simply have to set aside the rhetoric and deliver through innovation and action.”
For media inquiries and more information, please contact:
Cindy-Lee Minnaar
+27823700053
About Merge X:
Merge X is a pioneering platform aimed at transforming South Africa’s niche Internet Service Providers (ISPs) by providing them with shared services and resources to enhance their competitiveness in the market. By promoting collaboration and innovation, Merge X seeks to bridge the digital divide and improve internet connectivity for communities across South Africa.
About Tholo Lerotholi:
Tholo is an accomplished entrepreneur with a knack for technology and a successful career in the South African telecommunications industry. He managed commercial functions and strategy roles in various organisations incl. Vumatel, Link Africa and Zoom Fibre. He has a passion for startups, transformation and a drive for innovation.
About Farhad Suleman:
Farhad is a passionate and results-driven business leader with experience in scaling businesses. He is the founder and CEO of several successful startups and has more than 20 years’ experience in various industries, including technology and retail – Vodacom, Samsung, Huawei and Vodafone.
Deborah O’Connell
083 732 0634