MTN considering acquiring majority stake in South Africa's Telkom in bid to offer fixed-line services

MTN Group may acquire a majority holding in South Africa’s fixed-line incumbent Telkom, in a move aimed at narrowing the gap between MTN and Vodacom.

However, a decision is still a long way off, as only “exploratory discussions” have currently taken place, according to a Bloomberg report. Telkom is 40% owned by the South African government.

Telkom has made it known to the Johannesburg Stock Exchange (JSE) that it has been in talks with MTN SA “regarding the potential extension of their existing roaming agreement to include bilateral roaming and outsourcing of the operation of Telkom’s radio access network”.

Read more: MTN considering fixed-line acquisition in South Africa – Developing Telecoms.