MTN says that, while it does\u00a0engage with\u00a0Telkom as part of normal business practice, it would not speculate on a possible merger deal with the telco’s mobile arm, Telkom Mobile.<\/p>\n
A report by TechCentral\u00a0last week suggested that Telkom and MTN are \u201csensitive\u201d discussions over a possible deal, citing two \u201cwell-placed\u201d sources on the matter.<\/p>\n
\u201cIn 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.<\/p>\n
“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,”\u00a0Eben Albertyn, chief technology officer at MTN SA said.<\/p>\n
Acting\u00a0Cell C\u00a0CEO, Jose Dos Santos, however, hinted at a possible consolidation\u00a0between two of South Africa\u2019s newest mobile entrants.<\/p>\n
Last week, Sipho Maseko, Group CEO at Telkom, admitted\u00a0that the Telkom Mobile business is going through \u201ca very difficult time\u201d, and is in discussions with\u00a0parties over future operations.<\/p>\n
Asked by\u00a0BusinesTech whether\u00a0Cell C is currently in discussions with Telkom Mobile over a merger,\u00a0Dos Santos, Cell C chief commercial officer, and Acting CEO said:\u00a0\u201cMarket consolidation is inevitable. Consolidation will help smaller operators build scale to compete more effectively with players that have significant market power.\u201d<\/p>\n
\u201cThere 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.\u201d<\/p>\n
Telkom and MTN in talks: report<\/strong><\/a><\/p>\n Cell C hints at Telkom Mobile merger<\/strong><\/a><\/p>\n Telkom in talks over mobile arm<\/strong><\/a><\/p>\n