Telkom Mobile’s uncertain future: report
The Sunday Times reported today (4 August 2013) that Telkom Mobile is bleeding money, and that Telkom is considering whether to keep it or sell it.
The newspaper quoted Telkom CEO Sipho Maseko as saying that the Telkom board is reviewing its options with Telkom Mobile.
Maseko told the Sunday Times that they want to de-risk Telkom Mobile, and are looking at the amount of money spent on their mobile arm.
Telkom has been punting mobile services as one of its core future strategies, which include converged fixed-mobile solutions.
There have been discussions between Telkom and Cell C about a possible deal between the two companies, which Cell C CEO Alan Knott-Craig said made financial sense.
However, last week Telkom Mobile MD Attila Vitai said that a hypothetical deal between Telkom and Cell C would not make sense for Telkom.
Vitai said that a deal between the two operators would only make sense for Cell C, while it would simply move Telkom Mobile “from a loss-making fourth operator to a loss-making third operator”.
More on Telkom Mobile
No sense in Cell C deal: Telkom Mobile MD
Cell C confirms Telkom Mobile merger talks
Telkom’s modest mobile numbers
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