MTN-Telkom tie up 3 to 4 months away
MTN says that the planned Telkom Mobile infrastructure sharing deal is expected to be concluded within 3 to 4 months.
Speaking to analysts in a conference call on 24 April 2014, MTN said that, in the longer term, the deal with help the group to create a 4G data network at the lowest possible cost.
The operator said it also expects the network sharing deal to provide it with significant financial benefits in the form of CAPEX avoidance.
MTN signed an agreement with Telkom in March 2014, which would see it take over financial and operational responsibility for the rollout and operation of Telkom’s radio access network (RAN).
The two companies entered into a Heads of Agreement (HoA) to enable each party to be able to roam on either party’s network.
The proposed transaction will allow Telkom to maintain a mobile offering that supports a converged product set in the consumer and enterprise segments.
“It is important to note that Telkom will continue to define and manage its own mobile products and services and market itself under the Telkom brand,” Telkom said.
“The company’s channels and distribution network, client service infrastructure and billing channels will be unaffected by this agreement. Telkom will continue to run these services as it currently does.”
On Wednesday (23 April) Telkom issued a cautionary announcement on SENS, saying that it is still in discussions with MTN over the deal.
Telkom said that further information relating to the proposed transaction may likely be disclosed in its financial results announcement, “depending on the status of negotiations at that time”.
The group said that it intends releasing its results for the year ended March 2014 on about 13 June 2014.
More on Telkom and MTN
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