Telkom and Broadband Infraco are in talks to collaborate and remove duplication among state owned enterprises, Business Day reported.
Minister of Telecommunications and Postal Services Siyabonga Cwele told Business Day that “as part of a rationalisation process, Telkom and Broadband Infraco were looking at how they could co-operate on infrastructure projects”.
In September last year Broadband Infraco has appealed to government for a bailout to continue its operations.
The company told the parliamentary portfolio committee on posts and telecommunications that it requires an urgent cash injection of R243m. It also wants a further R932m in funding until 2019.
The demand for funding has hit government which holds 74% of Broadband Infraco and has already injected R1.8bn into the enterprise.