MTN mum on Telkom Mobile talks
MTN says that, while it does engage with Telkom as part of normal business practice, it would not speculate on a possible merger deal with the telco’s mobile arm, Telkom Mobile.
A report by TechCentral last week suggested that Telkom and MTN are “sensitive” discussions over a possible deal, citing two “well-placed” sources on the matter.
“In response to the recent speculation in the press around MTN and Telkom, in accordance with good governance, MTN does not comment on market rumour and speculation,” the group said in a statement.
“However, we note that as part of normal business practice MTN engages with companies such as Telkom on matters such as roaming agreements and leased lines and we continue to do this,” Eben Albertyn, chief technology officer at MTN SA said.
Acting Cell C CEO, Jose Dos Santos, however, hinted at a possible consolidation between two of South Africa’s newest mobile entrants.
Last week, 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.
Asked by BusinesTech whether Cell C is currently in discussions with Telkom Mobile over a merger, Dos Santos, Cell C chief commercial officer, and Acting CEO said: “Market consolidation is inevitable. Consolidation will help smaller operators build scale to compete more effectively with players that have significant market power.”
“There is likely to be some form of consolidation or partnership in the industry. However, any decisions on consolidation or future partnerships involving Cell C would be for our shareholders to decide upon.”
More on MTN and Telkom Mobile
Telkom and MTN in talks: report
Cell C hints at Telkom Mobile merger
Telkom in talks over mobile arm
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