Telkom, Broadband Infraco in ‘collaboration’ talks

17 Feb 2016

South African operator Telkom and fibre-optic infrastructure provider Broadband Infraco – which manages infrastructure rollouts to underserved areas on behalf of the government – are reportedly in talks over ‘possible collaboration’ on infrastructure projects, according to Telecommunications and Postal Services Minister Siyabongwa Cwele. Business Day reports that Broadband Infraco could start operating as a subsidiary of Telkom, thus working with the telco’s newly-formed wholesale subsidiary Openserve, or the two sides could form an infrastructure-related joint venture.

As previously reported by TeleGeography’s CommsUpdate, in June 2015 struggling Broadband Infraco was directed by its majority shareholder, the Department of Telecommunications and Postal Services (DTPS), to undertake a valuation exercise in preparation for its possible sale. The company – which has yet to report a profit since the first year of its operation (2008) – subsequently appealed to the government for an urgent cash bailout of ZAR243 million (USD17.7 million) in order to continue operation, though the request was denied.

South Africa, Broadband Infraco, Telkom South Africa