Telkom to spread into Africa

The head of fixed phone operator Telkom outlined a five-pronged strategy to grow the group's business and become a dominant African telecommunications company, reports Businessday.

The defensive strategy is in response to intensifying competition from European-based mobile operators, particularly in the voice and data market, who are scrambling to get a slice of the African market.

Telkom has received an offer from Vodafone, which wants to acquire its 12.5% stake in mobile phone company Vodacom and is also being courted by a consortium led by Mvelaphanda Holdings, which wants to acquire the whole of Telkom in a deal estimated at over R90 billion.

France Telecom is turning its attention back to Africa, with a new focus on making acquisitions in Anglophone countries, reports Ft.com.

The company is present in 13 African countries, mostly in French-speaking western parts of the continent, but last year made one of its most significant acquisitions by purchasing a controlling stake in Telkom Kenya, Kenya's leading telecoms company, for $390 million.

The move marks the French group's return to its strategy of small deals in high-growth emerging markets since it abandoned its $41 billion takeover of TeliaSonera, the Nordic telecoms company.

The latest study of 3G in emerging markets from Strategy Analytics concludes that 3G will meet a pressing need for voice and some data services in under-serviced African markets, reports Marketwatch.

But as most of these markets are hugely price-sensitive, operators will have to redesign 3G business models to subscriber affordability levels if the technology is to become broadly available.

Strategy Analytics believes in order to establish a critical mass of acceptance, 3G in both African and emerging Asian markets will have to penetrate the business user and high-end professional consumer segments with competitive broadband Internet tariffs.