SA’S MTN TO OFFER PHONE SERVICE TO TRANSNET

Telecoms

State-owned transport group Transnet has forged a new agreement with MTN whereby the cellular operator will provide cellphone services to the group. The move is important in the light of the participation of Transnet’s telecommunications company, Transtel, in the planned second network phone operator. It could set the platform for MTN to provide services to the new player which government hopes to have up and running before the end of this year. Together with Eskom Enterprises, Transtel has been guaranteed a 30% stake in the new operator which will provide competition to Telkom on the fixed line side of the business for the first time. This will signal the start of a phased liberalisation of the local phone market. Sifiso Dabengwa, MD of MTN SA, said a long term view of the deal was important given the potential partnership of MTN and the second network operator.

Business Day