Telkom and MTN are still in discussions around a bid to ink reciprocal roaming agreements, and have MTN take over financial and operational responsibility for the roll-out and operation of Telkom's radio access network (RAN).
The listed telco told shareholders in a statement this morning the parties are still in talks, and these could have a material affect on its share price if wrapped up successfully.
Telkom stock last traded at R49.98, a 0.32% gain during the course of morning trade.
Telkom and MTN are "following the legally-required regulatory approval processes, and as such would expect responses within the normal course of such proceedings", says Telkom.
Telkom CEO Sipho Maseko has said the deal should be wrapped up by the end of next March, noting it is subject to regulatory approval, including from the competition authorities and the Independent Communications Authority of SA.
Its decision to merge its towers with those of MTN is a bid to de-risk the business and stop pumping money into infrastructure.
Telkom has explained MTN will take over financial and operational responsibility for the roll-out of Telkom's radio access network equipment, but the networks will be independently configured.
The partnership is expected to enable Telkom to provide its customers with effective access to the latest national voice, 2G, 3G and long-term evolution networks, without having to incur the hefty capital expenditure typically required to achieve such national coverage.
Share