allworld.mediaNews from all over the world
Potential merger of Octotel and MetroFibre discussed to create major fiber optic network operator in South Africa
Read more
TechCentral
techcentral.co.za

Potential merger of Octotel and MetroFibre discussed to create major fiber optic network operator in South Africa

Octotel and MetroFibre are currently assessing a potential merger that could form the third-largest fiber optic network operator in South Africa, Octotel CEO Trevor van Zyl stated on the TechCentral Show.

Both companies are under the management of the same controlling shareholder. A significant participant in both Octotel and MetroFibre is a consortium led by African Infrastructure Investment Managers (AIIM), which is a division of Old Mutual Alternative Investments.

Synergy Potential

When asked if the merger of the two companies is a logical next step, Van Zyl clarified that it is an opportunity they are studying, not a done deal. He noted: 'It certainly makes sense to consider the synergy existing between these two enterprises.'

He added that since both companies are major players, their combination would make the consolidated entity the third-largest operator in the country, opening up significant opportunities while also presenting several complexities.

Regarding the current state of negotiations, Van Zyl stated that all types of synergies are currently being assessed, and he emphasized that there are specific areas for exploration. Furthermore, the company is operating within the framework set by the Competition Commission, which is highly significant.

He also mentioned that the resolution of the Vodacom-Maziv case has eased the consideration of consolidation, although he cautioned that any deal must justify itself. 'What is the advantage of consolidation primarily? That is what we really need to ask ourselves.'

Minimal Market Overlap

Van Zyl noted that the larger prospect lies outside the Western Cape for now, but he stressed that there are still areas in the province needing fiber optics, and Octotel will continue to build its network there. Octotel's network currently covers the Cape Town metropolis, the West Coast, and the Garden Route, serving just under 400,000 households.

He explained that the overlap with MetroFibre in the Western Cape is minimal. MetroFibre has focused its presence in the Western Cape on the corporate segment, whereas MetroFibre's consumer network is concentrated in Gauteng and other parts of the country. 'In fact, the overlap with us is very small,' he said. 'There is a great opportunity here in the Western Cape to leverage each other's assets and infrastructure.'

Neither company is pausing its spending while awaiting any transaction. Van Zyl stated: 'It would be careless of us to slow down while waiting for any deal. We continue to operate at full capacity.'

MTN South Africa CEO Ferdi Moolman previously told TechCentral this month that the operator does not rule out acquiring fiber optic network assets if a suitable opportunity arises and has not ruled out a deal with Telkom. When asked whether Octotel could become part of this consolidation, Van Zyl declined to comment but did not rule it out. 'Everything is possible as we move forward,' he said. 'If they do appear in two or three years, we will certainly consider it.'

He also anticipates consolidation among internet service providers as networks become saturated and smaller providers struggle to grow. 'We actually think it's quite exciting,' he noted, as it allows network operators to act faster with fewer, but larger partners.

Similar stories

Review of Internal Solutions for Connection Scaling in Chinese AI Chip Developments
Read more
pandaily.com

Review of Internal Solutions for Connection Scaling in Chinese AI Chip Developments

An industry report from September, prepared by Moyuan Think Tank and distributed by Semiconductor Industry Watch, analyzes how five registered Chinese AI accelerator suppliers are building their own factories for scaling. These factories represent connections between chips that allow multiple cards to function as a single machine within a server or rack.

The analysis is technical in nature and focuses on published throughput, product matching, and levels of implementation evidence for the ecosystem, excluding narratives about fundraising or stock prices.

Scaling differs from Ethernet or InfiniBand fabrics, which combine nodes into larger clusters. This review only considers accelerator-to-accelerator buses developed by the chip vendor itself. These are then evaluated based on public data: ranging from a complete lack of information to research papers, published specifications, samples, customer confirmation, first shipment, redeployment, and redeployment with a verifiable unit of connection area.

The maximum number of cards listed in datasheets is not considered proof that customers are already using such an area size in production.

Cambricon's MLU-Link is the most obvious example of first shipment among the materials reviewed. The product pages for MLU370-X8 list a cumulative bidirectional throughput of 200 Gbps per card with four ports. Earlier MLU290 class modules demonstrate an MLU-Link cumulative throughput of up to 600 Gbps on six ports, supporting multi-chip boards and inter-system connections beyond simple PCIe.

Enflame presents a patented path for scaling GCU-LARE through generations of CloudBlazer. Public data shows around 200 Gbps bidirectional on DTU 1.0 class cards and approximately 300 Gbps on DTU 2.0 / T20–T21 class modules, providing a clearer trajectory from chip to generation, even if the latter customer area sizes are harder to verify through open documentation.

Biren reveals its BLink scaling protocol. BR166 class materials indicate a connection bidirectional throughput of about 576 Gbps, while newer BLink 2.0 announcements hint at memory semantic links and optical super-node roadmaps targeting up to 1024 GPUs.

Moore Threads uses the MTLink brand, citing figures up to 240 Gbps on MTT S4000 bridge topologies covering two-, four-, and eight-card connections, as well as 784 Gbps from card to card on MTT S5000 devices. KUAE cluster materials emphasize the linearity of multi-card training.

MetaX described its own scaling relative to competitor products in official documents and demonstrated Xijing S600 rack-level designs connecting around 64 GPUs, although the report still requires a closer link between shipped SKUs and the exact fabric provided by customers.

Despite the throughput figures becoming discussed among the five companies, parameters such as bidirectional versus unidirectional units, counting per card versus counting per chip, and verified deployments within a single area remain uneven. None of the vendors reviewed in the report have reached the highest level of redeployment with a independently verifiable area size—this is a gap in evidence that operators should monitor as thousands of card clusters multiply.

Popular