Telkom set for wireless services in 2010; EBITDA falls 12.2%

24 Nov 2009

South African fixed line operator Telkom plans to launch wireless services in 2010, reports Reuters. The company is to spend ZAR6 billion (USD800 million) over the next five years on mobile telephony in a bid to offset declining profits from its fixed line services. ‘We believe there’s room for a fourth mobile operator in South Africa,’ said Telkom’s CEO Reuben September in a conference call.

For the six months ending 30 September 2009, Telekom recorded a 4% increase in revenue to ZAR18.7 billion but a 12.2% fall in EBITDA to ZAR5.1 billion, mainly due to higher operating costs domestically and pricing pressures in Nigeria.

South Africa, Telkom South Africa