South Africa's MTN to Take Over Management of Rival Mobile Network
Published on: 8th Mar 2014
South Africa's Telkom has confirmed that it is in talks that could see the outsourcing of its mobile network infrastructure to rival mobile network MTN.
In a statement to the stock market, Telkom confirmed that the talks cover the potential outsourcing of the operation of the Telkom radio access network (RAN) to MTN.
If the deal is approved, MTN will take over financial and operational responsibility for the roll-out and operation of Telkom's radio access network (RAN). The arrangements will optimise usage of their respective RANs but leave all other areas unaffected and independent.
The two companies will also conclude reciprocal roaming agreements to enable customers to roam between the two networks.
Telkom said that it should be able to provide its customers with effective access to the latest national voice, 2G, 3G and LTE networks without having to incur the significant capital expenditure needed to achieve such national coverage.
Furthermore, the adjustable nature of the roaming fees will assist in moving Telkom's operating cost base from being fixed to being more variable in nature.
The two companies are still discussing the finer details of the agreement, and will need regulatory clearances.