TNM bets on OCL acquisition to drive infrastructure growth

TNM plc says the acquisition of Open Connect Limited (OCL) will support its digital infrastructure growth strategy by strengthening connectivity and expanding enterprise services while maintaining open access to OCL’s wholesale network.

TNM plc chief executive officer Michel Hebert said this in an interview after the Competition and Fair Trading Commission (CFTC) agreed to its K23.5 billion OCL takeover, enabling the company to acquire the latter’s fiber network, data centre, network equipment, vehicles, and enterprise contracts.

Herbert: Other operators will continue to access the network. | Nation

CFTC said the acquisition of OCL, which operates national fibre network, must not affect its open access and neutrality features of the wholesale fibre network and that TNM plc must avoid discriminatory pricing or anti-competitive conduct towards competitors.

Herbert pledged that the Malawi Stock Exchange-listed firm will maintain open access to OCL’s wholesale network in line with CFTC’s conditions while outlining the importance of OCL assets in line with its digital infrastructure strategy.

Said Herbert: “Other operators will continue to access the network on fair and non-discriminatory terms.

“We will maintain the required separation between wholesale and retail operations, supported by independent board oversight and regulatory monitoring.”

He described the acquisition as a foundation from where the company will invest in improving the existing fibre network and its expansion to increase capacity and improve reliability.

Herbert: “The acquisition supports our strategy to grow TNM’s digital infrastructure and capabilities. The fibre network and data centre give us a stronger foundation for delivering reliable connectivity and expanding our enterprise services.

“We are investing for the long term to meet the needs of customers and support Malawi’s growing digital economy. This is an investment that meets our needs today and prepares us for the future.”

On the end-user perspective, he said the data centre will support telecommunications and Mpamba services, helping to strengthen quality and providing additional capacity for the company.

CFTC chief executive officer Desmond Kaunda said the commission will be monitoring TNM plc’s compliance to the set conditions for three years.

“The acquisition provides essential recapitalisation, prevents asset collapse, preserves approximately 40 jobs and supports digital infrastructure development without imposing adverse fiscal burdens on the state,” he said.

Capital market analyst and investor Benedict Nkhoma said the deal is more than an acquisition, adding that telecommunications is increasingly becoming a data-driven business, which makes ownership of fibre infrastructure critical for delivering high-speed broadband, improving network reliability.

Stockbrokers Malawi equity investment analyst Kondwani Makwakwa described the acquisition as strategic, saying it will strengthen TNM’s control over critical infrastructure, enhance service quality and reduce long-term operating costs.

Equity Masters Limited board member Purity Chitalo described the move as a standard growth strategy, observing that TNM plc’s 2017 acquisition of Burco Limited delivered tangible benefits, including new WiFi clients and technical expertise.

OCL operates a national fibre network, providing wholesale capacity to mobile operators.

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