Speculation is rife that Telkom Mobile will soon announce a deal to share networks with MTN, the Sunday Times reports.
According to the paper, industry experts have spoken of a deal reached behind closed doors - a move which could bring respite for Telkom's mobile arm.
The paper quotes Telkom CEO Sipho Maseko, who has repeatedly spoken about "de-risking" the company's mobile arm since his arrival at the helm, although no concrete moves had yet been made.
Telkom Mobile has struggled with rolling out infrastructure and reported a loss of R773 million for the six months to September last year.
The Sunday Times notes both MTN and Telkom denied any deal when rumours surfaced last year and earlier in February.
The paper says the companies neither confirmed nor denied the prospect when contacted in the past week.
Telkom is quoted as saying it is "still in discussions with various parties regarding Telkom Mobile" and an announcement would be made when talks concluded.
On the other hand, MTN's chief technology officer is quoted by the paper, saying the company does not comment on speculation but does engage with companies like Telkom on matters such as roaming agreements.
Telkom's sizeable amount of spectrum would be an attractive prospect for MTN and rival Vodacom - which the two have been looking at to expand broadband networks, the Sunday Times says.
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