Telkom and MTN in talks: report
A report suggests that Telkom and MTN are “sensitive” discussions over a possible deal, citing two “well-placed” sourced on the matter.
According to a TechCentral article, it is unclear what the deal would entail, or whether even if it would follow through, but the publication speculates that any deal between the two parties would serve to assist Telkom in “de-risking” its mobile arm.
In reporting its interim results for the six months ended September 2013, Sipho Maseko, Group CEO at Telkom, admitted that the Telkom Mobile business is going through “a very difficult time”, and is in discussions with parties over future operations.
Maseko said he would continue to be “opaque” around plans the group has for its mobile arm and derisking.
“We are in conversation with parties around this on some possible options – and without saying much around it, in respect to parties we are in dialogue with around this.”
“At the right time we will announce who the parties are and what exactly we will be doing, but the team is in the middle of very sensitive conversations,” Maseko said.
Telkom’s group interim results showed active mobile subscribers increased 6.9% to 1.598 million with a blended ARPU of R58.81.
Mobile revenue increased 55.4% to R926 million, while mobile data revenue rose 50.0% to R303 million.
Capex on its mobile business was up 56.4% to R815 million.
“We are encouraged by the improvement in mobile data revenue…However, we are continuing to explore all avenues to de-risk the mobile business,” the CEO said.
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