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Telkom, MTN enter talks over RAN, roaming

Telkom, MTN enter talks over RAN, roaming

Photo by Bloomberg

6th March 2014

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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Telecommunications group Telkom and South Africa’s second-largest mobile operator MTN on Thursday confirmed that they were in talks over potential radio-access network (RAN) and roaming expansion agreements as the fixed-line operator attempted to “derisk” its mobile operations.

Neither MTN nor Telkom would elaborate further, but Telkom noted that if the negotiations were successfully concluded, it could have a material effect on the price of Telkom’s securities.

The discussions surrounded the potential outsourcing of the operation of the Telkom RAN to MTN and a potential expansion of the existing roaming relationship between the parties to include bilateral roaming.

Telkom was currently exploring options of removing uncertainty in the mobile business and previously indicated that talks were under way with various undisclosed parties to develop a solution for the mobile unit, which continued to register losses.

As the mobile business continued to face the challenge of gaining market share in a highly competitive market, Telkom planned to curtail future operational and capital expenditure.

Edited by Creamer Media Reporter

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