Author: Duncan McLeod

Telkom on Friday confirmed what everyone already knows: that it is pursuing an acquisition of the financially troubled mobile operator Cell C.

Telkom CEO Sipho Maseko said communications regulator Icasa is making a grave mistake in the way it proposes to license access to the 5G-suitable 3.5GHz radio frequency spectrum band.

MultiChoice Group and Dimension Data decided to liquidate Vast Networks, South Africa’s largest public Wi-Fi hotspot provider, after several attempts to sell the business fell through.

Though Telkom continues to invest in fibre-to-the-home broadband, the number of fixed lines in service fell by almost a quarter year on year in the six months to end-September 2019.

Telkom’s spending on its mobile network has skyrocketed – with capital expenditure well above guidance – as it invests big money to ensure its network can keep pace with rapidly growing demand.

As speculation swirls that Telkom has a made a third approach to Cell C about a potential acquisition, the financially distressed mobile operator on Tuesday said it is making progress on a planned recapitalisation.

Telkom will terminate 2G services in March 2020, CEO Sipho Maseko said in an interview with TechCentral on Tuesday. It will be the first national operator in South Africa to do so.

Long-serving MultiChoice Group director Imtiaz Patel will relinquish his executive duties in September 2020, the pay-television broadcaster said on Tuesday.

Telkom issued a cautionary notice to shareholders on Tuesday saying it is in discussions in relation to a possible acquisition – and the most likely target is Cell C.

MultiChoice Group’s average revenue per user has fallen by 5% in South Africa as consumers continue to flock to lower-priced bouquets.