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  • MTN cannot rule out future deal with Telkom, says CEO

MTN cannot rule out future deal with Telkom, says CEO

Nicola Mawson
By Nicola Mawson, Contributing journalist
Johannesburg, 08 Sept 2025
MTN Group president and CEO Ralph Mupita.
MTN Group president and CEO Ralph Mupita.

South Africa’s second-largest (MNO) cannot rule out a future deal with another telecoms operator, including Telkom, says MTN Group president and CEO Ralph Mupita.

However, Mupita says there are currently no active talks with Telkom, quashing recent media speculation.

Shares in Telkom jumped on rumours of discussions late last week, before dropping sharply from a Thursday peak of R56.14, to close at R51.10 on Friday, a nearly 9% decline.

“There are no talks with advisors between ourselves and Telkom. We did discuss this in the past, but there are no active discussions with advisors with Telkom. I mean to the point of, can you rule [it] out in the future? We cannot rule out anything in the future,” notes Mupita.

MTN previously attempted to acquire Telkom in 2022, but failed after Telkom did not provide assurances around exclusivity. In 2023, MTN denied it was in new negotiations with Telkom, which recently refreshed its brand.

Mupita says MTN has two realistic growth options: a partnership with another operator or acquiring one. “Ours [MTN’s] are two possibilities. We're not building any fibre… our options are and build.”

Speaking at a Friday roundtable, he said South Africa’s telecoms market cannot sustain four large operators due to limited profit pools.

“We've always been of the view…That market consolidation is needed and inevitable over the medium- to longer-term. Profit pools are actually quite limited in South Africa… particularly by the number two and number three player,” he says in reference to tight margins.

Peter Takaendesa, chief investment officer at Mergence Investment Managers, says MTN can’t “close” the “chapter” of a potential deal with Telkom yet, “given the need for consolidation to ensure long-term sustainability”. He adds that the deal between Vodacom and Remgro-owned Maziv “is an additional catalyst in that direction”.

Vodacom was finally given the go-ahead to buy a 30% stake in Maziv, which owns Vumatel and Dark Fibre Africa, in the middle of last month, after appealing the Competition Tribunal’s decision to refuse the deal in the Competition Appeals Court.

That decision ends a three-year impasse and clears the way for Vodacom’s bid to expand its fibre network. Meanwhile, Blue Label – rebranding to Blu Label Unlimited – now holds a majority stake in Cell C and is moving towards listing the country’s fourth operator, which operates as an MVNO.

Both deals underwent rigorous scrutiny by the Independent Communications Authority of South Africa and competition authorities.

Mupita notes it would be a poor allocation of capital for MTN to build its own fibre network to compete with Vodacom. “On FTTH [fibre-to-the-home], it’s going to be partnering, or it’s going to be an acquisition at the right price at the right time.”

“There is a good reason why Vodacom took years fighting the competition authorities to get Maziv over the line,” Takaendesa comments.

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