South African Govt considers possible partners for Telkom in fixed, mobile markets but will wait until March 2013 to decide
South African Minister of Communications Dina Pule has hinted that a revised strategy for Telkom South Africa could include possible partners in terms of both fixed line and mobile operations. A statement released by Pule said: ‘Our decisions at the recently concluded Telkom AGM were informed by government’s view that corporate governance and appropriate management of State-Owned Companies (SoCs) cannot be left to just any interpretation of our expectations … In general, the Department of Communications has had to relook at all of its six priorities. Telkom is part of that priority set. Indeed we have been working on a revised Telkom strategy. Part of this Telkom strategy – started in the 2006/07 investment period – is already under implementation. The rest of that strategy, which pertains to broadband rollout and possible partners for fixed line and mobile telephony will be spoken to by March 2013’.
Telkom’s future has been cause for much speculation in recent months following the government’s controversial decision to block a bid by South Korea’s KT Corporation to buy a 20% stake in the firm. Subsequent rumours have included talk of nationalising the group, and more recently, speculation has centred on a potential merger between Telkom Mobile (8ta) and established operator Cell C. The government currently holds a 39.76% stake in Telkom.