The deal between Vodacom and WBS Holdings, the parent of wireless broadband supplier iBurst, allows the cellular network operator an entry into the WiMax space. It gives iBurst another anchor investor that can help it shore up its own expansion strategy and hopefully set it on the road to profitability.

iBurst has been on a restructuring and expansion program for the better part of the last two years. It has shuffled its shareholders, with BEE company Blue Label Investments taking a 40 percent stake from US-based gaming company Gtech and appointing Alan Knott-Craig Jr as MD.

iBurst has also spent about R200 million to expand its network coverage through the installation of more than 100 base stations. For this investment, iBurst has netted 27 000 customers.