Correction
ITWeb previously said in this story that Econet Wireless is a state-owned mobile operation, which is incorrect.
Econet Wireless is not a state-owned company, and never has been. It is a publicly-listed company on the Zimbabwe Stock Exchange, and its shares are held by a broad variety of private investors.
We apologise for the error.
Telkom has again denied fresh speculation that it is in discussions to take up 49% of Zimbabwean telco, TelOne.
Since late last year, news reports both locally and in Zimbabwe have said SA's fixed-line business has had its eye on a large stake in TelOne, Zimbabwe's fixed-line operator, and another chunk in Econet Wireless.
However, Telkom has consistently denied these claims, saying it only has a loose contract with TelOne to provide functional services to the struggling operator.
This morning, Charlotte Mokoena, Telkom's CEO of management services, reiterated Telkom's stance on the business.
“Telkom is not in any discussion to purchase equity in TelOne. However, the company has been discussing, and is close to concluding an agreement, to provide management services,” she says.
TelOne has reportedly been in financial difficulty for some time, and to save its skin, the stat-owned business has decided to allow a private investment. It is expected that it will sell 60%, and both MTN and Telkom have been pegged as suitors.
Zimbabwe has one of the lowest fixed and mobile telecommunications penetration rates on the continent. Frost & Sullivan estimates that in 2008, the country had 1.654 million mobile subscribers - less than 10% of the total population.
The numbers would be an exceptional addition to Telkom's income, specifically since it is eyeing several African countries as expansion targets. However, it is likely that political instability in the country will keep out investments from the likes of Telkom and MTN.
The countries recently signed a bilateral investment agreement to promote and protect trade in the agro-processing, telecommunications, mining and infrastructure sectors.
Trade and industry minister Rob Davies spearheaded the investment agreements between the countries. He said the treaty would build much-required business confidence in Zimbabwe's industry, and ensure the re-integration of the country into cross-border investments.
Davies' sentiments are reflected in Telkom's stance to boost the skills development in the telecoms sector in Zimbabwe. Mokoena says the company is essentially sending out skilled engineers to help the company gain some traction, and possible skills transfer.
“[The services] are to assist TelOne to prepare and build for the future,” she explains.
Reports indicate that TelOne does have an interested party in terms of an equity sale; however, the business has not been identified.
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