TeleGeography Logo

State backs Telkom asset sale to MTN

18 Oct 2007

South Africa’s Communications Ministry said yesterday it backed discussions between Telkom and MTN over plans by the fixed-line operator to sell some of its infrastructure to MTN. A brief statement by the department yesterday did not reveal exactly what is being negotiated, but said: ‘As government, we are in principle supportive of the current discussions. We will await additional information in this regard prior to commenting further.’

Whilst the exact nature of the discussions remains a tightly kept secret, local analysts have speculated that MTN, the country’s largest cellco, is looking to combine its business in South Africa with Telkom’s fixed-line unit, and eventually spin the merged company off as a publicly traded company. The new company would be worth ZAR55 billion (USD8.03 billion).

South Africa, MTN Group, Telkom South Africa

GlobalComms Database

Want more? Peruse the GlobalComms Database—the most complete source of intel about mobile, fixed broadband, and fixed voice markets.


TeleGeography is the definitive source for telecom news, numbers, and analysis. Explore the full research catalog.