Vodacom is said to discuss network-sharing deal with Telkom | Fin24
  • Data Market Inquiry

    MTN says it is prepared to defend itself before Competition Tribunal over report.

  • Claims of sabotage

    What we know so far about allegations of sabotage at an Eskom power station.

  • Dudu Myeni

    Court dismisses former SAA chiar's bid to have Outa withdraw from delinquency case.


Vodacom is said to discuss network-sharing deal with Telkom

Aug 29 2018 11:55
Loni Prinsloo, Bloomberg

Vodacom is negotiating a South African wireless network-sharing deal with fixed-line operator Telkom SA as a replacement for former partner Cell C, according to people familiar with the matter.

The unit of Vodafone lost about a R1bn ($70.7m) of annual revenue when Cell C jumped ship to fierce rival MTN earlier this year, the sources, who asked not to be identified, revealed. They have asked to remain anonymous as the talks aren’t public. Bringing in Telkom, South Africa’s fourth-largest mobile-phone company, would make up at least some of the shortfall, they said.

Vodacom and Telkom declined to comment.

Vodacom and MTN are the country’s two biggest mobile-phone carriers with about 43 million and 30 million customers respectively. That’s more than the total population, meaning some people have more than one wireless contract. To squeeze extra revenue, both companies are seeking to add services or partnerships - taking advantage of demand for their 4G spectrum from smaller rivals.

For its part, Pretoria-based Telkom, almost 40% owned by the South African government, is seeking ways to add scale and compete more effectively with its three larger rivals. The majority of the business is made up of fixed-line services.

Cell C has 16 million subscribers and Telkom 5.2 million.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER



Company Snapshot

Voting Booth

How concerned are you about ransomware attacks?

Previous results · Suggest a vote