Telkom reviewing mobile partnership
South African fixed-line operator Telkom (TKG) says that it is reviewing its mobile partnership to achieve a fixed-mobile service provider model across the fixed and mobile value chain.
"It takes an intensive period of time reviewing our mobile partnership to achieve Telkom's model. We can't have parts of the business embedded – it has to be integrated throughout. We have to maximise the integration of services and the host environment," said acting CEO Reuben September on Wednesday.
"For Telkom, a good mobile investment must be translated into a good mobile partner, in terms of data and expansion, the process is intensive, you have to look at all the options and, at the end of the day, arrive at the best option for Telkom," added September.
The CEO said that given the stage Telkom was in, the company views Vodacom as an important mobile service provider but didn't comment further on whether they were actively seeking to sell Vodacom.
"It wouldn't make sense to sell Vodacom just yet as it offers a large portion to Telkom's revenue. It is part of a growing market and has been a cash cow for a number of years, and will be in the near future," said an analyst.
"In terms of revising it's mobile strategy, they could start wireless services themselves and enter into a partnership with the subsidiary," he added.
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