According to the Communications Minister, General Siphiwe Nyanda, Telkom’s discussions about how it can be involved in mobile telephony are at a sensitive stage.<\/p>\n
As a result the company is declining to provide any information about its mobile strategy.<\/p>\n
The minister, giving a written answer to ANC MP Sikhumbuzo Kholwane on Wednesday, said:<\/p>\n
“Telkom, as a listed company, operates under regulations that require that any price sensitive information, which would include its mobile strategy, should be released to shareholders in an equitable basis.”<\/p>\n
He added: “Any public statements at this stage can compromise the company’s competitive and negotiating positions.”<\/p>\n
Nyanda explained that the rationale of the transaction to sell part of its Vodacom stake was in the restricted nature of the shareholders’ agreement between Telkom and Vodafone.<\/p>\n
This agreement prevented Telkom from providing mobile telephony, not only in South Africa, but also providing a competing business south of the Equator.<\/p>\n
Vodacom, in terms of the agreement, was however free to enter the fixed telecommunications market.<\/p>\n
“If one also takes into consideration the ongoing erosion from fixed line telephony to mobile telephony, the damaging consequences of staying invested in Vodacom becomes clear,” Nyanda said.<\/p>\n
“The freedom from the restrictive shareholders agreement gave Telkom the ability to now deliver its own mobile capability in South Africa.<\/p>\n
Telkom has also made it clear that it regards the acquiring of a mobile capability as integral to its growth strategy.”<\/p>\n