MTN South Africa and Cell C have signed a comprehensive new roaming deal, potentially making it more complicated for Telkom to pursue an acquisition of Cell C.
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Telkom on Friday informed investors that it is pursuing an acquisition of Cell C. So, why didn’t Telkom just say so in the first place? By 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.
Communications regulator Icasa on Wednesday moved to caution those involved in various efforts to rescue mobile operator Cell C that any deal must meet “regulatory compliance requirements”.
In the past year, Telkom lost 186 141 copper broadband lines but only gained 55 577 fibre connections. This has caused tremendous pressure on its revenue line.
Telkom wants to buy Cell C in a plan that will include reducing its troubled rival’s debt and renegotiating contracts with suppliers, according to people with knowledge of the situation.
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.
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.