Financial

Vodacom, Telkom sign multi-billion-rand roaming agreement

By June 2019 Telkom will have concluded a phased transition from its current roaming agreement with MTN to its new agreement with Vodacom.
By June 2019 Telkom will have concluded a phased transition from its current roaming agreement with MTN to its new agreement with Vodacom.

Vodacom and Telkom have concluded a long-term, multi-billion-rand agreement whereby Telkom will obtain roaming and facilities leasing services from Vodacom with full effect from June 2019.

The terms of the agreement will allow Telkom customers to roam on Vodacom's 2G, 3G and 4G networks, with the added benefit of seamless handover technology. This will result in an enhanced roaming experience for Telkom's customers as it will in future reduce the number of dropped calls as customers seamlessly move between networks.

"We are extremely pleased that Telkom has selected Vodacom as its strategic partner and we look forward to delivering on this long-term and mutually beneficial agreement," says Vodacom group CEO, Shameel Joosub.

Telkom has had a roaming agreement in place with MTN since its inception nine years ago for 2G and 3G services. Telkom will conduct a phased transition from the current roaming agreement. This process will conclude in June 2019 when its contract with MTN expires.

"Seamless handover and 4G mobile technology are new additions to Telkom's roaming agreement which will improve the customer experience on the Telkom network. The infrastructure sharing agreement will allow Telkom more efficient capital and operational expenditure," according to Sipho Maseko, CEO of Telkom.

"It complements Telkom's network rollout programme as Telkom remains committed to expanding its network. The agreement enables quicker site acquisition in the medium term. I am pleased we have concluded an agreement that enables us to improve our network efficiently," he adds

"Apart from the commercial benefit, this partnership between the country's fastest growing networks will also result in reduced network deployment costs for Telkom and cost savings for Vodacom, ultimately contributing to the reduction of data prices in South Africa," Joosub adds.

In May Cell C, also announced it had entered into a multi-billion-rand long-term roaming agreement with MTN, which will provide a major boost to Cell C's 4G coverage in South Africa.

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