Commission approves the creation of a JV between Dimension Data and Mweb for wholesale wireless technology

The Competition Commission unconditionally approved a transaction involving Dimension Data and Mweb combining their public WiFi hotspot networks and wholesale mobile broadband arrangements under a single joint venture (JV) company which will install and manage the hotspot network and wholesale mobile broadband bulk purchases.

The JV will then provide wholesale access to the retail component of the two parties at a cost-based fee, leaving the two companies free to then compete with each other (and other competitors) in terms of the retail packages to consumers. The JV will also provide wholesale access to third parties.

The Commission found that the transaction was unlikely to substantially prevent or lessen competition, and that it did not raise any public interest concerns.